Indiana – Tax Guidance for Nonprofit Organizations

SALT Report 1515 – The Indiana Department of Revenue has updated its bulletin regarding the application of sales tax for nonprofit organizations.  The bulletin discusses when sales tax must be collected by nonprofit organizations and when Indiana sales and use tax must be paid for purchases.
Registration
All nonprofit organizations must be registered with the Nonprofit Section of the Indiana Department of Revenue.  After registration, the organization will be provided with a taxpayer identification number that must be used on all sales tax exemption certificates. Nonprofit organizations can register for a sales tax exemption by filing Form NP-20A.
Sales by Qualified Nonprofit Organizations
Sales of tangible personal property by nonprofit organizations that are held no more than 30 days per calendar year are exempt from sales tax if they are represented as a fundraising activity designed to raise funds to further the nonprofit’s purpose.
Purchases by Non-Indiana Nonprofit Organizations
Nonprofit organizations not registered with the Indiana Department of Revenue and located in another state may use Form ST-105, or Streamlined Sales Tax Form F0003, to purchase items exempt from sales tax.
Purchases for Resale
Tangible personal property purchased for resale by a nonprofit organization is eligible for the sales tax exemption.
Additionally, all exempt purchases by nonprofit organizations must be directly invoiced to the organization and paid via the organization’s funds.
For Further Information: