Rounding the Tax in Indiana
- Jul 9, 2014 | Gail Cole
Sellers in Indiana now have the option of rounding the sales tax on an item by item basis. This change, which took effect on July 1, 2014, was instituted so that Indiana would be in compliance with the Streamlined Sales and Use Tax Agreement.
Prior to July 1, sellers could only round the tax on an invoice basis, not on individual items.
Retailers may deduct sales tax on items costing between $.01 and $0.7, when invoiced separately. However, if the "total sale or sales are more than seven cents," items costing up to seven cents are not exempt. Additional information is available on Indiana Department of Revenue Information Bulletin #33.
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