When Is Indiana Sales Tax Due? Filing Deadlines

Businesses operating in Indiana are responsible for collecting and remitting sales tax to the state. This tax, typically 7% on taxable sales, represents funds held in trust for the Indiana Department of Revenue (DOR). Compliance with sales tax obligations involves understanding when these taxes are due and how to submit them. Properly managing these responsibilities helps businesses meet their financial commitments to the state.

Understanding Filing Frequency

The Indiana Department of Revenue assigns a specific sales tax filing frequency to each business. This assignment is based on the business’s average monthly sales tax liability. New businesses are typically assigned a frequency based on their projected sales volume. The DOR evaluates the average amount of sales tax a business collects each month to determine if they should file monthly, quarterly, or annually.

Businesses with an average monthly sales tax liability exceeding $1,000 are generally required to file returns on a monthly basis. Those with an average monthly liability between $200 and $1,000 are typically assigned a quarterly filing frequency. For businesses collecting less than $200 in average monthly sales tax liability, an annual filing schedule is usually designated. The Indiana DOR will notify businesses of their assigned filing frequency, and it is important to monitor these communications to ensure proper compliance.

Key Due Dates

Sales tax returns and payments in Indiana are generally due on the 20th day of the month following the close of the reporting period. For example, sales tax collected during January would typically be due by February 20th. Quarterly filers would submit their return and payment by the 20th of the month following the end of the quarter. Similarly, annual filers would have a due date of January 20th for the preceding calendar year’s sales tax. If a sales tax due date falls on a weekend or a state holiday, the deadline is automatically extended to the next business day.

Making Sales Tax Payments

The primary method for submitting sales tax payments to the Indiana Department of Revenue is through the INtax online portal. This electronic system allows businesses to file their sales tax returns and remit payments concurrently. To make a payment online, businesses access their INtax account, navigate to the sales tax section, and proceed with filing the Form ST-103, which is the standard sales and use tax voucher.

Within the INtax system, businesses enter their sales data and calculate the tax due. They then have the option to submit the payment directly through the portal by providing their bank information for an electronic debit. It is important to ensure the payment date is scheduled no later than the return’s due date to avoid issues. Electronic payments are required for taxpayers whose estimated monthly tax liability or average monthly liability from the prior year exceeds certain thresholds. While electronic filing is encouraged and often mandated, some businesses may still have the option to mail their Form ST-103 and a check to the department.

Consequences of Late Filing

Failing to file or pay Indiana sales tax by the established due dates can result in financial assessments. Businesses that do not pay the full amount of tax shown on their return by the due date may incur interest charges on the unpaid balance. This interest is calculated from the original due date until the payment is made.

In addition to interest, penalties can be imposed. A common penalty for failure to pay sales tax is 10% of the unpaid tax liability or a minimum of $5, whichever amount is greater. If a return is filed late but has no tax liability, a penalty of $10 per day may be assessed, up to a maximum of $250. The Indiana Department of Revenue may also assess a penalty of 20% of the unpaid tax if a return is not filed within 30 days of department notification.