Indiana Form ST-105 is the sales tax exemption certificate Kokomo, Indiana retailers and station owners search for when buying stock to resell. Palmwick Lending, a small-business funding service in Kokomo, Indiana, explains where the certificate fits in a financed inventory purchase and what records partners read. Tax rules themselves are for the Department of Revenue and your tax adviser.
Scope of This ST-105 Guide
Owners searching for the Indiana ST-105 form, the ST-105 instructions or an Indiana sales tax exemption form ST 105 are looking for the certificate tied to buying goods for resale; confirm the rules with the Indiana Department of Revenue. This guide covers the practical side: where the certificate sits in your purchasing paperwork, how it affects a financed purchase, and the records to keep. It does not interpret Indiana tax law.
Where the Certificate Fits in a Stock Purchase
- You open an account with a supplier and provide the exemption certificate the supplier asks for.
- The supplier keeps it on file and invoices qualifying resale purchases accordingly.
- You receive the stock and the invoice, then sell the goods to customers.
- Your records show the certificate, the invoice and the later sales.
If the supplier has no certificate on file, the invoice may include tax; confirm the rules with the supplier and the state. That affects the amount you are asking a partner to finance, so sort out the paperwork before the order is placed.
How It Interacts With Inventory Financing
When a partner finances a stock order through inventory financing, it may read the supplier invoice. An invoice that matches the purchase order, with the tax treatment settled, is what the partner will want to see. A partner may also look at how much inventory the business carries and how fast it turns, so records that tie purchases to sales are useful beyond tax compliance.
For retail stores and boutiques, the invoice covers apparel or merchandise. For gas stations and convenience stores, store stock such as packaged food and drinks is bought from multiple suppliers, so keeping each supplier's paperwork current matters.
Indiana Sales Tax Exemption Certificate Verification
Suppliers sometimes want to check that a buyer's exemption information is valid, and buyers sometimes want to confirm their own status before a large order. Owners search for Indiana sales tax exemption certificate verification for that reason. Use the Indiana Department of Revenue's own tools and guidance for verification rather than third-party sites.
Records That Help Both Tax Files and Funding Requests
- A copy of each certificate you provided, with the supplier's name and the date.
- Supplier invoices matched to purchase orders.
- Sales records showing the stock was sold.
- Inventory counts at cost, taken on a regular schedule.
Partners reviewing a retail or station request may ask for inventory counts and sales history. The same records that support the exemption support the funding request.
Stock Purchases in Howard County, IN
Retail trade had 330 employer establishments in Howard County, IN in 2023, more than any other sector, including 44 gasoline stations, 40 clothing and accessories stores and 25 general merchandise stores (County Business Patterns 2023). Each buys stock for resale. For worked examples, read stocking a boutique in Kokomo, Indiana. More Palmwick guides sit on the resources page.
By Palmwick Lending · Updated