Indiana Resale Certificate: How to Get, Use, and Accept One

TL;DR

• Indiana buyers document resale with Form ST-105, General Sales Tax Exemption Certificate, or the Streamlined Sales Tax Certificate of Exemption.

• Buyers complete all five sections of ST-105 and give the certificate to the seller for qualifying resale purchases. Goods bought tax-free but used instead of resold are subject to use tax.

• Sellers check that the resale claim fits the purchase. An incomplete certificate does not relieve a seller of tax liability unless the missing information is obtained within 90 days of the sale.

• Sellers retain the certificate or other proof of the exempt sale for at least three years after the return reporting the sale is due.

What counts as resale documentation in Indiana

Indiana uses Form ST-105, General Sales Tax Exemption Certificate (State Form 49065, R7 / 6-23) for resale purchases. In Section 4, the buyer selects “Sales to a retailer, wholesaler, or manufacturer for resale only.” Indiana also accepts the Streamlined Sales Tax (SST) Certificate of Exemption. A Registered Retail Merchant Certificate (RRMC) proves registration to collect tax, but an RRMC number alone does not document an exempt sale.

Indiana businesses buying inventory for resale use ST-105 or the SST certificate. Out-of-state businesses may use ST-105 with a home-state tax ID and the issuing state. The claimed exemption must exist under Indiana law. Vehicle, trailer, and watercraft dealers use ST-105D for dealer-to-dealer sales.

How buyers get and use an Indiana resale certificate

1. Confirm registration. Indiana retail merchants register through INBiz for an RRMC. Registration costs $25 per place of business, and the RRMC is valid for two years. It renews automatically at no cost unless required returns or tax payments are missing. The RRMC shows the buyer’s 10-digit TID and 3-digit LOC number. Businesses outside Indiana may use ST-105 with their home-state tax ID and issuing state; DOR may ask for proof of registration. The RRMC does not replace the exemption certificate.

2. Complete ST-105 or the SST certificate. On ST-105, fill in all five sections. Enter your name, address, and Indiana TID and LOC, or your home-state tax ID and issuing state, in Section 1. Enter the seller’s name and address in Section 2. In Section 3, select single purchase or blanket and describe the goods. Select resale in Section 4, then sign, date, and print your name and title in Section 5. The seller must collect tax if required information is missing.

3. Give the certificate to the vendor. Provide it before the first tax-free purchase as a practical safeguard. If you cannot supply the required information, pay the tax and request a refund using Form GA-110L if eligible. Retain a copy, and update vendors when your registration or business details change.

4. Use the goods for resale. A shop can claim resale on inventory for customers, but not on office supplies for its own use. ST-105 cannot be used for utilities, vehicles, watercraft, aircraft, or gasoline; nonprofits cannot issue it. If you use exempt inventory for business or personal purposes instead of reselling it, you owe Indiana use tax. The signature on ST-105 is made under penalty of perjury, and misuse can result in tax, interest, and penalties.

How sellers verify and accept a resale certificate

1. Collect resale documentation. Indiana presumes retail sales delivered in the state are taxable until shown otherwise. Request a completed ST-105 or SST certificate for a resale claim. An RRMC number alone does not document the exemption.

2. Check every section. ST-105 requires all five sections. Confirm the buyer’s name, address, and TID and LOC or home-state tax ID and issuing state; your business name and address; the single-purchase or blanket selection and goods description; the resale box; and the buyer’s signature, date, printed name, and title. Ask the buyer to correct missing or conflicting entries.

3. Check whether the claim fits the purchase. A retailer buying merchandise it stocks presents a plausible resale claim. Supplies for its own use, or buyer details that do not match your records, warrant follow-up. Do not assume Indiana has an online certificate lookup; if you doubt a registration, contact the Indiana DOR. Do not accept ST-105 for a purchase the form excludes or when issued by a nonprofit.

4. Resolve problems. Charge tax if the buyer cannot support the exemption. If you accepted an incomplete certificate, you remain liable unless you obtain a completed certificate or missing information within 90 days of the sale. If DOR requests proof for an incomplete certificate, you have 120 days from its request to obtain a completed certificate or prove the sale was exempt by other means.

5. Keep the evidence. Retain the certificate or other proof of exemption for at least three years after the return reporting the sale is due. ST-105 has no stated expiration date, but request an updated certificate when the buyer’s name, address, entity, or registration changes.

Buyer vs. seller checklist

Resale exemption differs from nonprofit, manufacturing, and agricultural exemptions.

Where resale certificates go wrong

A blanket certificate should cover only qualifying resale purchases. If you buy inventory and office supplies from the same vendor, the certificate does not make the office supplies tax-exempt. As the buyer, separate those purchases and pay the applicable tax on goods you use rather than resell.

Sellers should question a resale claim when the goods clearly serve the buyer’s own operations. For example, a retailer’s certificate does not establish that cleaning supplies for its store are inventory for resale. Ask the buyer to clarify the purchase before treating the sale as exempt, and charge sales tax if the buyer cannot support the claim.

An old certificate can also become unreliable after a buyer changes its address, registration status, or business activity. Buyers should give vendors updated information, and sellers should request corrected documentation when a certificate no longer matches the buyer’s current details.

Blank fields can also defeat a resale claim. A missing LOC number, an unchecked single-purchase or blanket box, or a missing signer title leaves ST-105 incomplete. If the seller accepted it, the seller remains liable for tax unless it obtains a completed certificate or the missing information within 90 days of the sale.

FAQs

Does an Indiana resale certificate expire? ST-105 does not state an expiration date. Re-collect certificates periodically and when the buyer’s name, address, entity, or registration changes; the RRMC runs on a two-year cycle.

Can an out-of-state buyer use a home-state certificate? Indiana does not accept another state’s resale form on its own. Out-of-state buyers complete Indiana’s ST-105 using their home-state tax ID and issuing state, or use the SST certificate. The exemption claimed must be valid under Indiana law.

What if a seller accepts a bad certificate in good faith? A seller accepting a proper exemption certificate has no duty to collect or remit tax on that purchase. An incomplete certificate does not provide that protection unless the seller gets the missing data within 90 days, and a plainly non-qualifying purchase should not be treated as exempt.

Can an occasional seller use a resale certificate? An unregistered casual reseller cannot issue one solely because it occasionally sells goods. Registered retail merchants, wholesalers, manufacturers, and certain other exempt persons may issue certificates for qualifying purchases.

Can I scan or email a certificate? Yes. Indiana permits reproduced certificates when the wording and content remain unchanged. Keep a legible copy.