Indiana: Retail Sales Tax Liability for Sellers Registered Under SSUTA
- Nov 4, 2014 | Gail Cole
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.
“[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.
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