Indiana – Guidance for Wholesalers Updated

SALT Report 1328 – The Indiana Department of Revenue has released an updated sales tax information bulletin for wholesalers. The bulletin has been revised to clarify that Registered Retail Merchant Certificates (RRMCs) are not permanent; may be revoked due to failure to file returns or remit payments for sales, use, or withholding taxes; and are subject to a renewal process every two years.

In general, persons engaged in making wholesale sales in Indiana are Indiana retail merchants if they:
  • Sell tangible personal property, other than capital assets or depreciable property, to a person who purchases the property for the purpose of reselling it without changing its form
  • Sell tangible personal property to a person who purchases the property for direct consumption as a material in the direct production of other tangible personal property produced by the person in his business of manufacturing, processing, refining, repairing, mining, agriculture, or horticulture
  • Sell tangible personal property to a person who purchases the property for incorporation as a material or integral part of tangible personal property produced by the person in his business of manufacturing, assembling, constructing, refining, or processing
  • Sell drugs, medical or dental preparations, or other similar materials to a person who purchases the materials for direct consumption in professional use by a physician, a hospital, an embalmer, a funeral director, or a hair salon
  • Sell tangible personal property to a person who purchases the property for direct consumption in his business of industrial cleaning; or
  • Sell tangible personal property to a person who purchases the property for direct consumption in the person’s business in the direct rendering of public utility service.
Any person making wholesale sales in Indiana must register as an Indiana retail merchant by filing Form BT-1 with the Indiana Department of Revenue and submitting the application fee of $25.00. If the application is approved, the Department will issue a Registered Retail Merchant Certificate.  The RRMC is valid for two years and updates automatically with no additional charge for renewal unless a business fails to file required returns and/or remit payment of sales, use, or withholding tax liabilities, in which case the RRMC will expire.
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