Who owes Indiana use tax?
Generally, any type of business entity (individual, partnership, corporation, etc.) that makes purchases of tangible personal property is subject to use tax unless it previously paid at least a 7 percent sales tax on the purchase to the vendor. Use tax can be thought of as a mirror of the sales tax. Both our sales tax and use tax rates are 7 percent. Use tax is due on property brought into Indiana for use, storage or consumption, unless the Indiana Code (IC 6-2.5-5) contains an applicable exemption for your purchase. If you paid at least 7 percent sales tax at the time of purchase, you do not owe a use tax. However, if you did not pay at least a 7 percent sales tax, you may owe use tax.
Generally, any type of business entity (individual, partnership, corporation, etc) that makes purchases of tangible personal property are subject to use tax unless you previously paid at least a 7-percent sales tax on the purchase to the vendor. Use tax can be thought of as a mirror of the sales tax. Both our sales tax and use tax rates are 7 percent. Use tax is due on property brought into Indiana for use, storage or consumption, unless the Indiana Code (IC 6-2.5-5) contains an applicable exemption for your purchase. If you paid at least 7-percent sales tax at the time of purchase you do not owe a use tax. However, if you did not pay at least a 7-percent sales tax you may owe use tax.
Generally, any type business entity (individual, partnership, corporation, etc) that makes purchases of tangible personal property are subject to use tax unless you previously paid at least a 7% sales tax on the purchase to the vendor. Use tax can be thought of as a mirror of the sales tax. Both our sales tax and use tax rates are 7%. Use tax is due on property brought into Indiana for use, storage or consumption, unless the Indiana Code (IC 6-2.5-5) contains an applicable exemption for your purchase. If you paid at least 7% sales tax at the time of purchase you do not owe a use tax. However, if you did not pay at least a 7% sales tax you may owe use tax. What type purchases might cause me to become liable for Use Tax? • Catalog purchases by phone or mail from out-of-state vendors • Internet purchases from out-of-state vendors • Items withdrawn from your inventory for personal use or to give away • Any purchase for which a statutory exemption is not available per the Indiana Code (IC 6
