Indiana’s marketplace facilitator rules generally put the duty to collect and remit sales tax on the facilitator for taxable sales it facilitates to Indiana customers. A facilitator’s economic-nexus calculation includes both its own Indiana sales and sales it facilitates for sellers. A remote seller using a marketplace generally leaves those facilitated sales out of its own $100,000 calculation, but may still have duties for direct sales or other Indiana activity.
Indiana is comparatively straightforward on sales-tax rates: it has one statewide sales-tax rate and no local sales tax, so the rate calculation is simple once the right business is registered. The Indiana Department of Revenue administers the tax, and businesses use INTIME for electronic filing and payment. The details still matter—especially which transactions are facilitated, whether you also sell directly, and whether you facilitate short-term lodging.
What counts as a marketplace facilitator in Indiana?
Indiana generally treats a marketplace facilitator as a person that owns, operates, or otherwise controls a marketplace and facilitates retail transactions through it. A marketplace is a forum that connects buyers and sellers for retail transactions. The rules can cover marketplaces facilitating sales of tangible goods, electronically transferred products, services, and certain accommodations—not just websites selling physical products.
The practical question is whether the business operates or controls the marketplace and facilitates the retail transaction, including the payment or transaction process. If your business model is unusual, or you are unsure whether your role meets the statutory definition, confirm the classification with the Indiana Department of Revenue before deciding who must collect tax.
Who collects and remits tax on marketplace sales?
For taxable retail transactions facilitated into Indiana, the marketplace facilitator is generally responsible for collecting and remitting Indiana sales tax on behalf of the seller. The facilitator is treated as the retail merchant for those facilitated transactions. The seller and facilitator cannot simply agree between themselves to shift a statutory collection duty away from the party Indiana law makes responsible.
This does not automatically settle every tax obligation of the seller. A seller may have direct sales, physical presence, registration obligations, or other Indiana tax responsibilities separate from sales made through a facilitator. Keep marketplace statements and transaction records so you can distinguish facilitated sales from your own direct sales and reconcile what the facilitator collected.
Indiana’s marketplace facilitator threshold
A remote marketplace facilitator must register and collect when its gross revenue from sales into Indiana exceeds $100,000 in the current or preceding calendar year. The calculation includes the facilitator’s own Indiana sales and sales it facilitates for marketplace sellers. The threshold is based on gross revenue and can include transactions that are exempt from sales tax or otherwise not taxable; do not calculate it using only the tax collected.
Indiana’s remote-seller economic-nexus threshold also uses $100,000 in gross revenue from qualifying sales into the state in the current or preceding calendar year. Indiana removed its separate transaction-count threshold. A business with physical presence in Indiana should not rely on the remote-seller threshold as a safe harbor; physical presence can independently require registration. Check the current Indiana Department of Revenue guidance for how your specific transactions fit the calculation.
Which sales count toward the threshold?
For a marketplace facilitator, count both its own sales into Indiana and the sales it facilitates into Indiana for sellers using its marketplace. The Department of Revenue describes the calculation as gross revenue, including sales that are not subject to sales tax or are considered tax exempt. The relevant sales can include tangible personal property delivered into Indiana, products transferred electronically into Indiana, and services delivered in Indiana.
A remote seller that uses a marketplace facilitator generally excludes sales made through that marketplace to Indiana customers from the seller’s own $100,000 calculation. The seller should still count its own direct Indiana sales and review any other business activity that could create a registration obligation. Keep records that identify the channel, transaction amount, destination, and tax treatment; ask the Department of Revenue or a compliance professional to review uncertain categories.
When must marketplace sellers collect Indiana sales tax?
If all of a remote seller’s Indiana sales are made through a facilitator that collects and remits the tax, the seller generally does not collect tax a second time on those facilitated transactions. The facilitator’s collection duty does not necessarily cover the seller’s direct orders, sales through a different channel, or other taxable activity. A seller with Indiana physical presence or direct sales that meet the applicable nexus rules may need to register and collect on those transactions.
Marketplace sellers should verify what the facilitator actually collects, retain transaction and tax reports, and avoid treating marketplace sales as proof that every Indiana obligation has been handled. If you sell both through marketplaces and directly, separate the two streams and confirm your registration and filing position with the Indiana Department of Revenue.
How to register for Indiana sales tax
A marketplace facilitator that meets Indiana’s registration requirements should register with the Indiana Department of Revenue as a retail merchant. The Department identifies INBiz or a paper BT-1 application as registration routes; INTIME is the state’s online tax account system used for tax administration, filing, and payment. Facilitators can use the same registration for their direct sales and facilitated sales.
After registration, set up access to the business tax account in INTIME and confirm the tax types and filing frequency assigned to the account. A facilitator handling lodging or other applicable taxes may need those registrations as well. Registration details depend on the business and its activities, so confirm the current application process and account setup with the Department before making sales that require collection.
Indiana filing, payment, schedules, and due dates
Indiana requires businesses to file and pay sales tax electronically. INTIME is the Department’s online option for filing returns and making payments. Sales-tax returns are generally monthly, but the Department may assign a different filing frequency; its small-business guidance says a merchant with annual sales-tax collections below $1,000 may be required to file annually. The assigned schedule—not a general assumption—controls your account.
Review the filing frequency and due dates shown for your tax account in INTIME, and file a return for each required period even when there is no tax due if the account requires a return. The Department may review accounts and change filing status. If a due date falls on a weekend or legal holiday, the Department’s INTIME guidance says the return and payment are due the next business day. Confirm the current due date in your account and pay by the applicable deadline.
Penalties and compliance risks
Late or missing returns, unpaid tax, and incorrect collection can lead to penalties and interest under Indiana law. The amount depends on the type of failure, the tax due, and the circumstances; this page does not estimate a penalty amount. Filing and paying on time, reconciling marketplace reports, and correcting errors promptly can help limit avoidable compliance problems.
If you discover an unfiled period or a collection error, review the account and contact the Indiana Department of Revenue about the appropriate correction process. Do not assume that a marketplace’s tax report replaces your own required return, or that a facilitator’s collection covers direct sales. For a business with multiple channels or past-due periods, have the facts reviewed before submitting corrections.
Do marketplace sales create lodging or innkeeper’s tax duties?
Yes. A marketplace facilitator that facilitates rentals of Indiana rooms or accommodations for periods of less than 30 consecutive days must collect applicable sales tax and county innkeeper’s tax. County innkeeper’s tax rates and adoption vary by county, unlike Indiana’s statewide sales-tax rate. The Department of Revenue says facilitators register for applicable county innkeeper’s tax with the Department and remit the tax to the Department, which distributes it to the appropriate county.
For marketplace-facilitated accommodations, the facilitator is responsible for collecting and remitting applicable tax; the lodging provider should still check its own obligations for direct bookings and other activity. The treatment can depend on the accommodation, rental period, county, and any applicable exception. Confirm the current county tax and registration requirements with the Indiana Department of Revenue before listing or facilitating lodging.
Not sure how this applies to your business? We handle US sales tax registration, filing and remittance for ecommerce sellers as a fully managed service, for one fee. Book a free consultation and we will review your own position with you.
Indiana marketplace sales-tax responsibilities and threshold treatment
| Situation | Indiana treatment |
|---|---|
| Facilitator’s own Indiana sales | Include gross revenue in the facilitator’s $100,000 economic-nexus calculation. |
| Sales facilitated for marketplace sellers | Include gross revenue in the facilitator’s calculation; facilitator generally collects and remits tax on taxable facilitated transactions. |
| Remote seller’s sales through a facilitator | Generally exclude these marketplace sales from the seller’s own $100,000 calculation; verify that the facilitator handles the facilitated transactions. |
| Seller’s direct Indiana sales | Evaluate separately for nexus and collection duties; marketplace collection does not automatically cover direct orders. |
| Exempt or nontaxable sales into Indiana | May still count toward the facilitator’s gross-revenue threshold; do not calculate the threshold from tax collected alone. |
| Short-term accommodation facilitated through a marketplace | Facilitator collects applicable sales tax and county innkeeper’s tax for rentals under 30 consecutive days; county tax varies by location. |
Frequently asked questions
What is a marketplace facilitator in Indiana?
It is generally a person that owns, operates, or controls a marketplace and facilitates retail transactions through it. Indiana’s definition can apply to marketplaces facilitating goods, digital products, services, and accommodations. If your business’s role is unclear, confirm it with the Indiana Department of Revenue.
Do marketplace facilitators have to collect sales tax in Indiana?
Generally, yes: a facilitator that meets Indiana’s registration requirements collects and remits tax on taxable retail transactions it facilitates into Indiana. The facilitator is treated as the retail merchant for those transactions. Its own direct sales and other applicable taxes must also be considered.
What is Indiana’s marketplace facilitator sales threshold?
The remote-seller economic-nexus threshold is more than $100,000 in gross revenue from sales into Indiana in the current or preceding calendar year. The facilitator includes its own sales and facilitated sales, including certain exempt or nontaxable sales. Physical presence can create a separate registration obligation.
Do marketplace facilitators count their own sales toward Indiana’s $100,000 threshold?
Yes. Indiana’s Department of Revenue says facilitators count both their own Indiana sales and sales they facilitate for marketplace sellers when calculating the threshold.
Do sellers still need to collect Indiana sales tax if they sell through a marketplace?
The facilitator generally collects on taxable sales it facilitates, so the seller does not collect a second time on those transactions. The seller may still need to register and collect on direct sales or address obligations arising from physical presence or other Indiana activity. Keep records that distinguish marketplace and direct transactions.
Are marketplace facilitators responsible for Indiana lodging or innkeeper’s tax?
A facilitator that facilitates Indiana accommodations rented for less than 30 consecutive days must collect applicable sales tax and county innkeeper’s tax. The facilitator registers for applicable county innkeeper’s tax with the Indiana Department of Revenue and remits it to the Department. County rates and applicability vary, so check the property’s location and current rules.
How do marketplace facilitators register and file sales tax in Indiana?
Register with the Indiana Department of Revenue as a retail merchant, using the registration route the Department provides, such as INBiz or a paper BT-1 application. Then use INTIME to manage the tax account, file electronically, and pay; confirm the assigned filing frequency and due dates in the account. Register for applicable additional taxes, including county innkeeper’s tax when facilitating qualifying lodging.
How we handle this for you
The mechanics in Indiana are manageable on their own; the cost is the time it takes every single filing period, in every state you are registered in. We are a managed service: our team registers you with the Indiana Department of Revenue, prepares and files your returns, and keeps you compliant period after period. You get one point of contact and one invoice — you do not get another dashboard to learn.
See our sales tax compliance services, check where you have obligations with the nexus calculator, or talk to us about Indiana.
Official sources
- https://www.in.gov/dor/i-am-a/business-corp/remote-sellers/marketplace-facilitators/
- https://www.in.gov/dor/i-am-a/business-corp/business-faq/remote-seller-faqs/
- https://www.in.gov/dor/files/sib89.pdf
- https://www.in.gov/dor/i-am-a/business-corp/business-faq/
- https://www.in.gov/dor/files/new-small-business-handbook.pdf
- https://www.in.gov/dor/files/intime-business-guide.pdf
Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This page is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.