Indiana Department of Revenue Provides Guidance for Use Tax Waiver for Donations to Fight COVID-19

Indiana Department of Revenue Provides Guidance for Use Tax Waiver for Donations to Fight COVID-19

As a follow up to Governor Holcomb’s March 19, 2020, Executive Order 20-05, the Indiana Department of Revenue has provided additional guidance regarding the types of items that may be eligible for a use tax waiver if they are donated to fight the COVID-19 pandemic, as well as the process for obtaining the waiver.

Qualifying items.  The Department’s guidance states that items eligible for waiver of use tax include:

o Medicine;
o Medical supplies, including PPE, ventilators, and dialysis machines;
o Food donated to charities helping feed those impacted by COVID-19;
o Clothing, bedding, and personal care products for homeless shelters and other charities helping those displaced or at risk due to COVID-19;
o Soaps, sanitizers, disinfectants, detergents, and other cleaning supplies donated to medical facilities and the charities mentioned above; and
o Building supplies, beds, and other materials used for field hospitals or other temporary medical facilities.

While this list is not exhaustive, the Department’s guidance makes clear that there must be a COVID-19 connection for the waiver to apply.

How to claim.  To obtain the waiver, donors must obtain approval from the Department. They may do so by emailing COVID19donations@dor.in.gov and submitting the following information:

o Donor’s name;
o Donor’s Tax ID or FEIN;
o Whether donor manufactured or purchased donated items;
o List of items donated, including cost or purchase price of items;
o Organization receiving donated items; and
o Confirmation by donee organization that items have been or will be donated (email confirmations from donee organization are acceptable).

If the Department approves waiver, the donor is not required to report use tax on its next sales and use tax return, income tax return, or consumer use tax return.

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