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Indiana: Retail Sales Tax Liability for Sellers Registered Under SSUTA


 Indiana offers grace period for SSUTA filers.

What happens when a seller charges and collects the incorrect amount of Indiana Department of Revenue explains that such sellers are not liable for tax for the first 30 days after a change in the taxability matrix.

Under SSUTA:

“[P]rior to establishing a retail sales tax liability based solely on the seller’s failure to timely file a return, member states will give at least 30 days’ notice for a seller to file its return if the seller is registered under the SSUTA and has no legal requirement to register in Indiana.”

In addition, the Indiana Department of Revenue “provides further relief from liability to the state to sellers for having charged and collected the incorrect amount of sales or use tax resulting from the seller or certified service provider relying on erroneous data provided by the department in the taxability matrix. If the department amends an existing provision of its taxability matrix, the department shall, to the extent possible, relieve sellers and certified service providers from liability to the state until the first day of the calendar month that is at least 30 days after notice of a change to Indiana’s taxability matrix was submitted to the Streamlined Sales and Use Tax Governing Board, provided the seller or certified service provider relied on the prior version of the taxability matrix.”

The purpose of the Streamlined Sales and Use Tax Agreement is to “simplify and modernize sales and use tax administration in order to substantially reduce the burden of compliance.” To date, twenty-four states have adopted the simplification measures in the Agreement.

Simplify sales tax management for your business. Learn more.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.