Indiana Form ST-105 Valid Through December 31, 2023

Posted on Wednesday, November 22, 2023

Has your organization filed Form NP-1 or are you still relying on your Form ST-105 for your sales tax exemption? A reminder that Form ST-105 is only valid through December 31, 2023.

Prior to July 1, 2022, a nonprofit organization registered with the Indiana Department of Revenue filed Form NP-20A, Nonprofit Application for Sales Tax Exemption, and received a Form ST-105 to use when making purchases. This form allowed the organization to be exempt from paying Indiana sales tax on specific purchases. Beginning July 1, 2022, nonprofit organizations must still file Form NP-20A to register for sales tax exemption; however, the Form must be filed electronically through INTIME. In addition, the nonprofit must complete Form NP-1 for each of its vendors through INTIME. Form ST-105 which was used previously, only collected part of the information needed to declare sales tax exemption status. Form NP-1, which replaces Form ST-105, combines both proof of your nonprofit exemption and acts as an exemption certificate. Again, each vendor will need an NP-1 which can be accessed through your organization’s INTIME account.

To maintain the sales tax exemption, your nonprofit must file Form NP-20R, Nonprofit Organization’s Report, by May 15 every five years. Form NP-20R replaces Form NP-20 which was filed every year. The other change is that the new form, NP-20R, is due by May 15 for all organizations no matter your organization’s fiscal year-end. The five-year filing process is based on your organization’s federal employer identification number (EIN). Your first Form NP-20R is due on the following date based on your EIN.

May 15, 2024, if the organization does not have an EIN or the EIN ends in 00 through 24.
May 15, 2025, if the organization’s EIN ends in 25 through 49.
May 15, 2026, if the organization’s EIN ends in 50 through 74.
May 15, 2027, if the organization’s EIN ends in 75 through 99.

The above date is the due date for the first NP-20R filed. Subsequent forms are due every 5 years from your original due date.

As a reminder, to qualify for a sales tax exemption, there are certain requirements that must be met:

The purchaser must be a qualified nonprofit organization.
The organization must not be operated predominately for social purposes.
The article purchased must be used to carry on the nonprofit’s purpose. This means the article must be used for the same purpose as that for which the organization is being exempted, or the article must be purchased to raise money to carry on the nonprofit’s purpose.
The transaction must be invoiced directly to the nonprofit organization and paid directly via the organization’s funds. Purchases for the private benefit of any member of the organization, such as meals and lodgings, are not eligible for exemption.

Contributed by: Carrie Minnich, MAcct, CPA | Partner | DWD CPAs & Advisors

Posted in Mission Minded Nonprofits

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