Indiana doesn’t issue a standalone resale certificate. To buy inventory tax-free in Indiana for resale, you register for a Registered Retail Merchant Certificate (RRMC) through the state’s INBiz portal, then complete Form ST-105 — the General Sales Tax Exemption Certificate — and hand it to your supplier. The supplier keeps it on file, and you skip Indiana’s 7% sales tax on qualifying purchases. There’s no separate application to the Department of Revenue for the ST-105 itself.
Step 1: Register for a Registered Retail Merchant Certificate
The RRMC is the prerequisite. Any business making retail sales in Indiana is required to have one, and it doubles as your sales tax permit.1Indiana General Assembly. Indiana Code 6-2.5-8-1 – Registered Retail Merchants Certificate Application Filing Fee You register through INBiz and pay a $25 fee per business location.2Indiana Department of Revenue. Indiana Department of Revenue – Sales Tax Each additional location needs its own certificate and its own $25 fee.
Once approved, the DOR issues your certificate with a 10-digit Taxpayer Identification (TID) number and a 3-digit location (LOC) number. Keep those numbers accessible. You’ll need both every time you fill out an ST-105.
The RRMC is valid for two years from the date it’s issued or renewed. The DOR renews it automatically at no cost within 30 days of expiration if you’ve filed all required returns and paid all taxes owed. If you haven’t, the DOR notifies you at least 60 days before expiration that it won’t renew.1Indiana General Assembly. Indiana Code 6-2.5-8-1 – Registered Retail Merchants Certificate Application Filing Fee A lapsed RRMC makes every ST-105 you issue legally questionable, so staying current matters more than the paperwork on any single certificate.
Step 2: Complete Form ST-105
Form ST-105 is a free, fillable PDF on the Indiana Department of Revenue’s sales tax forms page.3Indiana Department of Revenue. Indiana Department of Revenue – Sales Tax Forms You don’t file it with the state. You fill it out and give it to your supplier, who keeps it on file to prove the sale was exempt. All five sections must be completed or the exemption is invalid.4Indiana Department of Revenue. Form ST-105 – General Sales Tax Exemption Certificate
What each section asks for:
- Section 1 identifies you as the buyer. Enter your TID and LOC numbers from your RRMC. Out-of-state buyers without an Indiana TID enter their home state’s tax ID instead.
- Section 2 is the seller’s name and address.
- Section 3 asks whether this is a blanket certificate covering ongoing purchases or a single-purchase certificate, and asks you to describe the items you’re buying.
- Section 4 is the reason for the exemption. For resale, check the box for “Sales to a retailer, wholesaler, or manufacturer for resale only.”
- Section 5 is your signature, printed name, title, and date. The signature block includes an acknowledgment that misuse can trigger tax liability, interest, and civil or criminal penalties.
Blanket or Single-Purchase
Section 3 makes you choose. A blanket ST-105 covers all qualifying future purchases from the same seller as long as your RRMC stays active, so you don’t fill out a new form for every order. A single-purchase certificate applies only to the transaction described on that form.4Indiana Department of Revenue. Form ST-105 – General Sales Tax Exemption Certificate
Most retailers who restock from the same wholesalers use the blanket option. A blanket certificate isn’t a blanket pass, though. It only covers items you’re genuinely buying for resale from that seller.
What the Exemption Actually Covers
The ST-105 exempts tangible personal property you’re buying for resale in the ordinary course of business.5Indiana General Assembly. Indiana Code 6-2.5-8-8 – Exemption Certificates Anything you’re buying for your own use — equipment, supplies, furnishings, items for employees — doesn’t qualify. A restaurant buying ingredients to cook and sell is making a legitimate resale purchase. That same restaurant buying a dishwasher for the kitchen is not; the dishwasher is consumed by the business rather than resold.
Only registered retail merchants, wholesalers, and manufacturers registered with the DOR are authorized to issue exemption certificates.5Indiana General Assembly. Indiana Code 6-2.5-8-8 – Exemption Certificates You can’t borrow someone else’s RRMC, and you can’t issue an ST-105 if your certificate has lapsed or been revoked.
If Your Business Is Out of State
Out-of-state businesses buying from Indiana suppliers for resale can use the same Form ST-105. In Section 1, enter your home state’s sales tax ID or business license number in place of an Indiana TID.4Indiana Department of Revenue. Form ST-105 – General Sales Tax Exemption Certificate Complete all five sections, including the signed misuse acknowledgment. The Indiana seller keeps the certificate on file.
Buying tax-free in Indiana doesn’t erase your sales tax obligations at home. When you resell those goods to your own customers, your home state’s rules and rates apply.
Keeping Your Certificate in Force
Because the ST-105 only works when it’s backed by an active RRMC, ongoing compliance is the real work. File your sales tax returns on time and remit what you collect. The DOR reviews your compliance status before every two-year renewal, and filing and paying before the certificate expires results in a one-year renewal rather than the standard two-year term.1Indiana General Assembly. Indiana Code 6-2.5-8-1 – Registered Retail Merchants Certificate Application Filing Fee
Update your INBiz records promptly when anything changes: address, ownership structure, additional locations. The DOR can revoke your certificate for cause, including failure to file returns or failure to remit tax you’ve collected on the state’s behalf.6Indiana General Assembly. Indiana Code 6-2.5-8-7 – Revocation of Certificate Payment Revocation ends your ability to make retail sales in Indiana at all.
Penalties for Misuse
Using an ST-105 to avoid tax on items you don’t intend to resell is a Class B misdemeanor in Indiana. A seller who knowingly accepts a fraudulent certificate faces the same charge.7Justia. Indiana Code Title 6, Article 2.5, Chapter 9 – Enforcement and Penalties The DOR will also assess the unpaid sales tax plus interest, and a 10% negligence penalty applies when the deficiency results from carelessness rather than intent.
The acknowledgment in Section 5 is enforceable. It states that both you personally and your business entity can face tax liability, interest, and civil or criminal penalties for negligent or intentional misuse.4Indiana Department of Revenue. Form ST-105 – General Sales Tax Exemption Certificate Keep your ST-105 practice narrow: real resale inventory, active RRMC, all five sections completed every time.