Guides sellers through Indiana sales tax compliance: establishing nexus, registering with the Indiana Department of Revenue via INtime, classifying sales at the 7% flat rate (with key exemptions), preparing the ST-103 return, and managing exemption certificates (ST-105). Covers both in-state sellers and out-of-state remote sellers subject to Indiana's $100,000/200-transaction economic nexus threshold.
Determine whether the seller has physical or economic nexus in Indiana. Indiana imposes a $100,000 or 200-transaction economic nexus threshold for remote sellers, and is a full Streamlined Sales Tax (SST) member. If nexus exists and the seller is not yet registered, initiate registration through the INtime portal (intime.dor.in.gov) or via SST central registration.
Classify all Indiana sales at the 7% flat statewide rate (no local add-ons). Identify exempt categories: grocery food, prescription and OTC drugs, manufacturing equipment (IC 6-2.5-5-3), resale purchases, and SaaS (Indiana does not tax SaaS). Flag taxable items that clients may mistakenly assume are exempt, such as clothing, canned/downloaded software, and prepared food.
Run this workflow in your AI agent
Install the MCP connector once — your agent loads the right skills, works through each phase, and routes to a licensed Indiana accountant for review.
Prepare the Indiana ST-103 Sales Tax Return for the applicable period (monthly, quarterly, or annual depending on IDOR-assigned filing frequency). Compute gross receipts, deductible exempt sales, net taxable sales, tax due at 7%, and any prepayment credits. Indiana requires returns even for zero-liability periods.
File the ST-103 and remit payment through INtime (intime.dor.in.gov) by the due date — generally the last day of the month following the close of the period. Confirm submission, save the confirmation number, and retain supporting records. Indiana requires records to be kept for at least 3 years (IDOR audits may go back 3 years for standard assessments).