In Indiana, sales tax is charged at a flat rate of 6% on every retail transaction that is performed. Sales tax is imposed on items like soft drinks, alcoholic beverages, candies, food marketed or sold with the help of a vending machine, food sold along with eating implements, and readily cooked food.
Bakery products like danish or bagels are usually not taxed. However, if they are sold in a heated state or with eating implements, they become taxable.
For the purpose of getting sales a tax exemption in Indiana, an application has to be made to the Indiana Department of Revenue in form no NP 20A. If the application is approved by the IDR, then the agency will issue the ST 105 form to the applicant.
The sales tax exemption certificate offered by the Indiana Department of Revenue is known as the Indiana Department of Revenue General Sales Tax Exemption Certificate or ST 105. When the applicant presents the ST 105 certificate to the department, he or she receives a waiver of 6% from the state sales tax.
In Indiana, the following items are exempted from sales tax:
- Ice
- Bottled water
- Medications
- Fruit juices
- Raw or unprepared staple food
Important Amendments
- Rental and leases of personal tangible properties are taxable
- Installation and delivery charges are subject to sales tax
- Durable medical equipment rental or sale is not subject to sales tax
- Replacement and repair charges are exempted from sales tax
Contact Details:
Indiana Department of RevenueDepartment of Revenue
100 N Senate Avenue
Indianapolis, IN 46204
Tel: (317)232-2240
Fax:(317) 232-1021
