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Welcome to DOR's Tax Talk Blog
Tax Talk is a weekly blog published each Wednesday by the Indiana Department of Revenue (DOR) that discusses tax tips, DOR programs, and helpful information for tax preparers. During tax season blogs are posted on both Mondays and Wednesdays.
Sales Tax 101 for Fall Festivals
October 16, 2019
Last week’s Tax Talk informed Hoosiers about Food and Beverage Tax (FAB) during the fall festival season. Hoosiers across Indiana will shortly be filling their weekends visiting different festivals, while the cooler days and colorful leaves become a mainstay. These festivals also offer many items to spruce up your home or keep you warm during the cooler months ahead, but what does that mean for sales tax?
If you are a vendor traveling through Indiana to one of these festivals, you should be already registered for a sales tax permit in your home state.
But did you know, Indiana requires that all sellers making sales in the state, even temporarily, must collect Indiana’s 7% sales tax?
If you’re one of these vendors, we have some great information below to get you started:
Registering for a sales tax permit in Indiana
You can register for a sales tax permit through INBiz.
What information do you need to register for a sales tax permit in Indiana?
- Your estimated monthly taxable sales. If left blank, you will be a monthly filer.
- If you are a seasonal business.
- If you provide lodging for less than 30 days.
- If you will sell food and beverage.
- If you will sell alcoholic beverages.
- If the location is included when reporting sales tax on a consolidated basis.
How much does it cost to apply for a sales tax permit in Indiana?
There is a $25 registration fee for businesses in Indiana. Other business registration fees may apply.
How long does it take to receive your Indiana sales tax permit?
DOR will contact you within 48 hours regarding the status of your application.
Do you have to renew your Indiana sales tax permit?
Yes, but the renewal is automatic every two years at no charge if your account is in good standing.
If you are still unsure what do to you can check out DOR’s Sales Tax website to learn more.
Stay FABulous with Fall Festivals and Taxes
October 9, 2019
Fall means a lot of things. Comfortable weather, sweaters, pumpkin spice lattes and fall festivals. It won’t be long before you start filling up your weekends visiting counties or towns and buying all the knick-knacks for sale. But if you’re a vendor taking advantage of the festivals to sell your products, you need to do your research.
If you cater food and drinks, you need to know if the county or municipality you’re located in has a Food and Beverage Tax (FAB). DOR has a list of counties and municipalities that have FAB tax in effect and the rates for each county. You can also contact the county auditor’s office to learn if the location of the fall festival is in an area that requires FAB be paid.
Here’s what you need to do:
- Register your business through INBiz. If you haven’t done this before, register as a new business and add FAB to your account.
- You must register an account for each county or municipality you operate in that has FAB.
- Collect and remit FAB through INtax. You have until the end of the following month to remit the tax you collected.
- Example: If Monica sold food and drinks at a festival in October and collected FAB, she has until the end of November to remit the tax.
Still not sure what to do? Check out our Business Guide to Indiana Food & Beverage Tax for more information.
In some cases, vendors may need to collect both FAB and sales tax. We'll have more information on when to collect sales tax in next week's Tax Talk.
If you have any questions, our team is happy to help!
Contact us at:
Phone: (317) 233 – 3260