Indiana recently abolished the transaction threshold for out-of-state sellers, i.e. those with no physical presence in the state.
This major change, which will take effect on 1 January 2024, is designed to simplify sales tax collection for Indiana, affecting many online businesses.
Previously, out-of-state sellers were only required to register and collect Indiana sales tax if they completed 200 or more transactions with Indiana customers in a year.
From now on, any remote seller generating more than $100,000 in annual sales in Indiana is required to register and collect state sales tax.
The basic sales tax rate in Indiana is 7%. This tax applies to the majority of taxable goods and services sold in the state.
For more information, don’t hesitate to contact our experts.
Source : Indiana Department of Revenue
