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Are services taxable in Indiana

By June 2, 2016November 16th, 2019Illinois Sales Tax, Uncategorized

Are services taxable in Indiana
Items that are taxable in Indiana include all tangible products. While groceries are exempt from sales tax, prepared foods are taxable. In addition, some grocery items are taxable. These items fall into three categories, candy, soft drinks, and dietary supplements.
You are not obligated to pay sales tax in Indiana if you offer a service. But the water gets a little murky if your service results in “tangible personal property”. The state defines this as the “true object” of the transaction.
To clarify things, services such as chiropractic adjustments do not result in a tangible product; therefore, they are not taxable. (Note: This does not include rental income; it is taxable unless rent is being paid for facilities that are creating a feature film.)
the contrary, services that offer the creation of goods that result in a product are taxable. Therefore, there is a tax obligation.
Ask yourself if you are selling a good at the end of your service. If you have a product to sell after your service has been rendered, then you have a tax obligation.
You can find a table describing the taxability of common types of services later on this page.
Shipping charges in Indiana are not taxable as of July 1, 2013. The Department of Revenue now declares that there is no tax obligation on shipping charges as long as they are stated separately on the invoice.
If you choose to deliver goods yourself or through a private delivery service, then your shipping is taxable. The exemption only applies to shipping done through the US mail or common carriers like UPS or Fed Ex.
“Drop shipping” refers to the common business practice in which a vendor, often in a different state, makes a sale of a product which is shipped to the end-user by a third party supplier hired by the initial vendor. In Indiana, drop shipments may or may not be subject to taxation depending on the circumstances.
Are services taxable in Indiana
            

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