Indiana NP-1 Nonprofit Sales Tax Exemption Certificate: Filing and Renewal

To get the Indiana NP-1 nonprofit sales tax exemption certificate, your organization files Form NP-20A (Nonprofit Application for Sales Tax Exemption) through the state’s INTIME portal, and the Indiana Department of Revenue mails the NP-1 certificate once it approves the application.¹ The certificate lets you buy goods, services, and accommodations for your nonprofit’s mission without paying Indiana’s seven percent sales tax.² The NP-1 itself is the certificate; NP-20A is how you ask for it.

Does Your Organization Qualify

Indiana Code 6-2.5-5-25 sets three conditions. Your organization must fall into a qualifying category, the purchases must be used to carry on or raise money for its nonprofit purpose, and the organization cannot be operated predominantly for social purposes.³

The qualifying categories are wide. The statute covers nonprofit corporations, institutions, trusts, groups, united funds and their affiliated agencies, cemetery associations, and organizations operating exclusively for religious, charitable, scientific, literary, educational, or civic purposes, provided no income benefits any member, trustee, shareholder, employee, or associate privately. Fraternal and social organizations and business leagues also qualify so long as they don’t produce private gain. The statute separately names Indiana-licensed hospitals, labor unions, churches, monasteries, convents, public schools, parochial schools, and certain pension trusts.³

Watch the social-purpose limit. If your organization spends more than half its money on social activities, the state treats it as “predominantly social” and denies the exemption on purchases used for those functions.⁴ Federal 501(c)(3) status is a strong signal but not a substitute; the Department of Revenue makes its own determination under Indiana law.¹

What to Gather Before You File

Have these ready before you open INTIME:

Your IRS determination letter. The Department of Revenue requires proof that the IRS recognizes your organization as tax-exempt.
Your Federal Employer Identification Number (FEIN).
Your articles of incorporation or other formation documents. The legal name on the application must match these exactly.
Physical and mailing addresses.
Your date of formation.
A specific description of your activities and how they align with one of the qualifying purposes under Indiana law.

New organizations have a filing window: Form NP-20A is due within 120 days of formation.⁵ Missing that window doesn’t permanently disqualify you, but it can complicate your registration and delay tax-free purchasing.

Filing Form NP-20A Through INTIME

INTIME (the Indiana Taxpayer Information Management Engine) is where the application lives. Create an INTIME account for your organization if you don’t have one, navigate to the nonprofit application section, and submit the NP-20A with your IRS determination letter uploaded.⁶

Be concrete in the activities description. A vague statement like “serving the community” invites follow-up questions that slow the review. Name your actual programs and tie them to a statutory category (charitable, educational, religious, and so on).

The state doesn’t publish a guaranteed processing timeline. Reviews can take anywhere from a few weeks to roughly 90 days depending on volume and whether additional information is needed. If your application is incomplete or your stated purpose doesn’t clearly connect to a qualifying category, the department will request clarification through INTIME, so check the account for messages. Once approved, your NP-1 certificate is available through INTIME to access and print.¹

What You Can Buy Tax-Free

With the NP-1, your organization can buy tangible personal property, services, and accommodations without paying Indiana’s seven percent sales tax, as long as the purchase serves your nonprofit mission.³ You present the certificate, or the Form ST-105 General Sales Tax Exemption Certificate, to vendors at the point of sale.²

Several common purchases don’t qualify:

Meals during meetings, even meetings that further your nonprofit purpose, because meals benefit individuals.
Lodging for officers or members. Hotel rooms for staff or board members remain subject to sales tax and the county innkeeper’s tax.
Member reimbursements. If a member pays out of pocket and the organization reimburses them, the sale is still taxable; the member pays sales tax at the register regardless.
Anything tied to social activities: holiday parties, social gatherings, recreational events.

Every exempt purchase must be invoiced directly to the nonprofit and paid with the organization’s own funds.⁴ An employee buying supplies on a personal card and expensing them later doesn’t count; that purchase is taxable at the register.

When You Have to Collect Sales Tax on What You Sell

The NP-1 exempts your purchases. It doesn’t automatically exempt your sales. Indiana Code 6-2.5-5-26 sets a $100,000 annual sales threshold. If total sales stay below $100,000 in both the current and previous calendar year, your sales remain tax-free as long as the proceeds support your nonprofit purpose.⁷

Once you cross $100,000 during a calendar year, you must begin collecting and remitting sales tax on all subsequent sales for the rest of that year and every year after, until your sales drop below $100,000 for two consecutive years.⁷

Six kinds of organizations never need to collect sales tax on their sales regardless of volume: churches and other places of worship, monasteries, convents, Indiana public schools, parochial schools maintained by a recognized religious denomination, and youth organizations focused on agriculture.⁴

Sales of books, periodicals, and similar materials designed primarily to further the organization’s educational, cultural, or religious purposes don’t count toward the $100,000 threshold. A church selling Bibles or a professional association selling certification guides can exclude those from the cap.⁷

Keeping the NP-1 Active: Form NP-20R Every Five Years

Approval isn’t permanent. Every five years, your organization must file Form NP-20R (Nonprofit Organization’s Report) by May 15 to confirm it still qualifies.¹ Which year your report is due depends on the last two digits of your FEIN. Organizations with FEINs ending in 50 through 74, for example, have a May 15, 2026 deadline; after that first due date, you file every fifth year.⁸ Check your own FEIN against the department’s schedule.

Missing this deadline revokes your sales tax exemption. Once revoked, your organization owes sales tax on every purchase until it applies again and receives a new approval. File the NP-20R through the same INTIME portal you used for the NP-20A.⁶

Penalties for Misusing the Certificate

Using the NP-1 or an ST-105 for purchases that don’t serve your nonprofit purpose has real consequences. Indiana’s ST-105 includes a signed acknowledgment that misuse, negligent or intentional, can produce back taxes, interest, and civil or criminal penalties against both the individual making the purchase and the organization.⁹ The most common violation is running personal purchases or meals through the exemption. Limit in writing who is authorized to present the certificate, and make sure anyone buying for the organization knows the boundaries above.

1
Indiana Department of Revenue. Nonprofit Tax Forms
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STATS Indiana. About Indiana Retail Sales and Use Taxes
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Indiana General Assembly. Indiana Code 6-2.5-5-25 – Exemption; Nonprofit Organizations
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Streamlined Sales Tax. Application of Sales Tax to Nonprofit Organizations
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Indiana Department of Revenue. Income Tax Information Bulletin 17 – Taxation and Filing Requirements of Nonprofit Organizations
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Indiana Department of Revenue. Indiana Tax Guide – Nonprofit Organization
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Indiana General Assembly. Indiana Code 6-2.5-5-26 – Nonprofit Organizations; Less Than
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Indiana Department of Revenue. Changes for Nonprofits
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Indiana State Forms. General Sales Tax Exemption Certificate Form ST-105