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Governor Mike Braun
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Sales and Use Tax Refunds

Customers may be entitled to Sales and Use tax exemptions that may require the filing of a refund claim. If the customer is registered as a retail merchant with the department, the customer may purchase items exempt from tax directly from the vendor. No refund claim is needed. However, customers who have not registered with the department will pay tax to the vendor and may file for a refund directly with DOR.

A vendor who collects and remits the sales tax to the state is remitting the tax on behalf of the purchasers. This is the purchasers' tax, and the purchasers must request a refund. The vendor may only apply for the refund if they have evidence that the tax was returned to the customer.

If you are representing a customer, a valid power of attorney is required.

Customers may claim a refund by submitting a Refund Claim Request on INTIME or by using Form GA-110L.

Available Exemptions

A useful tool to help understand what is taxable and exempt is Streamlined Sales Tax Taxability Matrix found on Streamlined Sales Tax website.

To help you navigate the refund claim request process, below is information for submitting claims for common exemptions. Each category will include the following:

  • A brief description of the exemption type including qualifications
  • Documentation checklist for submissions
  • Related bulletins
  • Additional resources
  • Agriculture Exemptions

    Indiana law provides an exemption from Sales and Use tax on the purchase of tangible personal property (including utilities) if the purchased items are directly used in the direct production of food for human consumption. Taxable activities include storage and transportation before and after production, maintenance, and general farm administrative activities. If property is used in both an exempt and taxable manner, a percentage of exempt use may be applied.

    Checklist

    • Refund Claim Request on INTIME or by using Form GA-110L.
    • Valid Power of Attorney on file (if applicable)
    • Include in explanation of refund: agriculture exemption
    • Purchase invoices showing Indiana tax charge or use tax payment
    • Description of how each item is specifically used in the production process
    • Spreadsheet summarizing the requested amount per period (tax year, quarter, or month)

    Related Bulletin

    Additional Resources:

  • Manufacturing Exemptions

    Indiana law provides an exemption from Sales and Use tax on the purchase of equipment, supplies, and raw materials (including utilities) that are directly used in the direct production of goods. The manufacturing process is applicable to many business types including restaurants. Manufacturing is changing the form of raw materials into something new for sale.

    Production activities are exempt and include those items used in changing the form for the raw materials. Nonproduction activities are taxable and include items such as the storage of raw materials and finished goods, maintenance activities, breakrooms, bathrooms, etc. If equipment, supplies, or materials are used in both an exempt and taxable manner, a percentage of exempt use may be applied.

    Manufacturers also qualify for a nonreturnable packaging and wrapping materials exemption, which covers materials used to contain or wrap manufactured goods sold to their customers.

    Checklist

    • Refund Claim Request Form or by using Form GA-110L
    • Valid Power of Attorney on file (if applicable)
    • Include in the explanation of refund: manufacturing exemptions
    • Purchase invoices showing Indiana tax charge or use tax payment
    • Description of how each item is specifically used in the production process
    • Spreadsheet summarizing the requested amount per period (tax year, quarter, or month)

    Related Bulletins

    Additional Resources

  • Medical Exemptions

    Indiana law provides an exemption from Sales and Use tax for certain drugs, medical equipment, and medical supplies in certain situations.

    Patients

    • Drugs and medical supplies purchased with a prescription from a licensed practitioner are exempt, including:
      • blood
      • blood plasma
      • insulin
      • legend drugs
      • non-legend drugs
      • oxygen
    • Any other medical supplies and equipment if purchased with a prescription from a licensed practitioner and is used exclusively for the medical treatment of a diagnosed medical condition.
    • Colostomy bags, ileostomy bags, and their related supplies and equipment, with or without a prescription acquired by the patient for the patient’s own use.
    • Prosthetic and hearing devices are exempt, if the following apply:
      • Sold to a patient for the patient’s specific use, with or without a prescription.
      • Worn on and in the body to replace or correct/prevent a physical deformity.
      • Fitted or dispensed by a registered or licensed person.
    • Durable medical equipment and mobility enhancing equipment are exempt if all the following apply:
      • Sold pursuant to a prescription to the patient. Cannot be general use equipment for a facility; must be sold to a patient.
      • Used primarily and customarily to increase mobility or to correct a deformity of medical condition.
      • Are not of general use by a person without injury or with normal mobility.
      • Can stand repeated use. Are not disposable.

    Practitioners (includes hospitals and nursing homes)

    • Only drugs and medical supplies purchased by a licensed practitioner for direct use in treating the practitioner's patient or for resale to the practitioner’s patients. The invoice to the confined person must have itemized charges for the specific items for them to be exempt.
    • Most items are subject to sales tax.

    Examples of what does NOT qualify

    General medical supplies used in a facility (i.e. bandages, unless they are specifically itemized on the bill to the patient (items purchased for sale exemption))

    • A motor vehicle would not qualify, but a specialized lift for a wheelchair that’s installed in the motor vehicle would qualify.
    • A hot tub is of general use and does not qualify.

    Checklist

    • Refund Claim Request on INTIME or by using Form GA-110L.
    • Copy of prescription or medical order from the doctor
    • Valid Power of Attorney on file (if applicable)
    • Include in explanation of refund: medical purchases exemption
    • Purchase invoices showing Indiana tax charge or use tax payment
    • Description of how each item is specifically used in the medical process
    • Spreadsheet summarizing the requested amount per period (tax year, quarter, or month)

    Related Bulletins

    Additional Resources

  • Nonprofits and Governments

    Indiana law provides an exemption from Sales and Use tax on items purchased by certain nonprofit entities (payment for items comes directly from the nonprofit and cannot be a reimbursement) that meets their nonprofit purposes. The purchase cannot be made for the private benefit of the members such as meals and lodging for members. Indiana State and local governments may also purchase items exempt from tax when they are purchased directly by the government entity.

    Registered Nonprofits and Governments can make purchases exempt from tax directly from vendors by using INTIME to access form NP-1 for each vendor for general purchases and ST-109NP&G for utilities.

    Register a nonprofit

    Checklist

    • Refund Claim Request on INTIME or by using Form GA-110L.
    • Evidence of payment made by nonprofit or government entity
    • Valid Power of Attorney on file (if applicable)
    • Include in explanation of refund: nonprofit/government exemption
    • Purchase invoices listing a nonprofit or government entity as the purchaser, showing Indiana tax charge or use tax payment
    • Description of how each item is specifically used by nonprofits and governments
    • State or federal taxpayer identification number received upon registration
    • Spreadsheet summarizing the requested amount per period (tax year, quarter, or month)

    Related Bulletins

    Additional Resources

  • Public Transportation

    Indiana law provides an exemption from Sales and Use tax on public transportation business purchases. The property must be predominantly used to transport people or goods for compensation to qualify for the exemption.

    Checklist

    • Refund Claim Request on INTIME or by using Form GA-110L.
    • DOT number
    • Valid Power of Attorney on file (if applicable)
    • Include in explanation of refund: public transportation exemption
    • Include in explanation: Purchase invoices showing Indiana tax charge or use tax payment
    • Description of how each item is specifically used in public transportation
    • Spreadsheet summarizing the requested amount per period (tax year, quarter, or month)

    Related Bulletins

    Additional Resources

    • IC 6-2.5-5-27
  • Purchase for Resale

    Indiana law provides an exemption from Sales and Use tax on inventory items purchased by a registered retail merchant for resale or lease in its business. Inventory items can be sold alone or as part of another product.

    Retail merchants may also qualify for a nonreturnable packaging and wrapping materials exemption, which covers materials that are used by a retail merchant to contain or wrap the goods when they are sold to their customers.

    Checklist

    • Refund Claim Request on INTIME or by using Form GA-110L.
    • Retail merchant number or streamline registration number
    • Proof of resale of the items being offered for sale (i.e. catalog or website)
    • Valid Power of Attorney on file (if applicable)
    • Include in explanation of refund: purchase for resale
    • Purchase invoices showing Indiana tax charge or use tax payment
    • Spreadsheet summarizing the requested amount per period (tax year, quarter, or month)

    Related Bulletins

    Additional Resources

    • IC 6-2.5-5-8 and 6-2.5-5-9
    • 45 IAC 2.2-5-14 and IC 6-2.5-5-15
  • Research and Development Equipment and Supplies

    Indiana law provides an exemption from Sales and Use tax for equipment and supplies (including utilities) directly used in scientific and technical research activities for experimental and laboratory research and development. The research and development must be on new products or improvements to or new uses of existing products in Indiana.

    • Items must be purchased for research purposes and cannot be items that were removed from inventories or previously used for other activities.
    • These items cannot be used for activities incidental to research such as general heating/cooling, capital improvements, janitorial, inventory control, marketing, managerial, or administrative activities.

    Checklist

    • Refund Claim Request on INTIME or by using Form GA-110L.
    • Purchase invoices with Indiana tax charge or use tax payment detail
    • Valid Power of Attorney on file (if applicable)
    • Include in explanation of refund: research and development exemption
    • Purchase invoices showing Indiana tax charge or use tax payment
    • Description of how each item is specifically used in the research process
    • Spreadsheet summarizing the requested amount per period (tax year, quarter, or month)

    Related Bulletins

    Additional Resources

  • Recycling Exemption

    Indiana law provides an exemption from Sales and Use tax on the purchase of equipment, supplies, and recycling materials (including utilities) that are directly used in the processing of recycled materials for a profit. Processing recycled materials is changing the form of property with scrap value into something new for sale.

    Recycling processing activities are exempt and include items used in receiving scrap items and those used in changing the form of the scrap items into new recycled material.

    Recycling processing does not include demolishing or improving real property, processing garbage that will end up in a landfill, solid waste disposal, or merely collecting recycling materials.

    If property is used in both an exempt and taxable manner, a percentage of exempt use may be applied.

    Checklist

    • Refund Claim Request on INTIME or by using Form GA-110L.
    • Valid Power of Attorney on file (if applicable)
    • Include in explanation of refund: recycling exemption
    • Purchase invoices showing Indiana tax charge or use tax payment
    • Description of how each item is specifically used in the recycling process
    • Spreadsheet summarizing the requested amount per period (tax year, quarter, or month)

    Additional Resources

  • Vehicles, Trailer, and RV

    The Sales tax is applied to all Indiana vehicle sales. This means when title changes sales tax is due. However, there are a limited number of exceptions. The back of the Certificate of Gross Retail or Use Tax Exemption (ST-108E) lists all available statutory exemptions.

    Some of the exemptions available includes sales of vehicles to:

    • Nonprofits
    • Indiana state or local government agencies
    • the federal government
    • be used for hire in public transportation
    • other dealers for resale

    For more detailed instructions on exemptions and transactions see: DOR: Business FAQ.

    Checklist

    • Refund Claim Request on INTIME or by using Form GA-110L.
    • Original invoice, exemption documentation, proof of tax payment, and proof of state residency
    • Valid Power of Attorney on file (if applicable)
    • Include in explanation of refund: vehicles, trailer, or RV exemption
    • Purchase invoices showing Indiana tax charge or use tax payment
    • Description of how each item is specifically used and the method of vehicle delivery
    • Spreadsheet summarizing the requested amount per period (tax year, quarter, or month)

    Related Bulletins