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The ST-108 form, officially known as the Certificate of Gross Retail or Use Tax Paid on the Purchase of a Motor Vehicle or Watercraft, is an essential document in the state of Indiana. This form is required when titling a vehicle or watercraft, ensuring that the appropriate sales or use tax has been collected and paid. The form captures critical information, including the dealer's name, identification numbers, and the purchaser's details, alongside specific vehicle identification information such as the Vehicle Identification Number (VIN) or Hull Identification Number (HIN). A significant aspect of the ST-108 is its role in calculating the sales or use tax based on the total selling price, which includes various costs associated with the sale, excluding federal excise tax. The form also accommodates trade-in allowances for like-kind exchanges, allowing sellers to deduct the value of a trade-in from the total selling price before calculating the tax owed. Furthermore, the seller must certify that the information provided is accurate and that the tax collected will be submitted to the Indiana Department of Revenue. If a purchaser claims an exemption, both the dealer and the buyer must complete an additional form, ST-108E, to affirm the exemption at the time of licensing. This process ensures compliance with Indiana tax regulations and facilitates a smooth transaction for both parties involved.

Preview - St 108 Form

Form

ST-108

State Form 48842

(R2 / 3-08)

Indiana Department of Revenue

Certificate of Gross Retail or Use Tax

Paid on the Purchase of a

Motor Vehicle or Watercraft

NAME OF DEALER

 

 

Dealer’s RRMC # (Registered Retail Merchant Certificate Number)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TID# (10 digits)

 

 

LOC# ( 3 digits)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dealer’s FID # (Federal Identification Number, 9 digits)

 

 

Dealer’s License Number (seven digits)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Address of Dealer

City

 

 

 

 

 

 

 

State

 

Zip Code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of Purchaser(s) (pRINT OR tYPE)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Address of Purchaser

City

 

 

 

 

 

 

 

State

 

Zip Code

Vehicle Identification Information of Purchase

VIN # (Vehicle Identification Number) or HIN # (Hull Identification Number)

Year

Make

Model/Length

 

 

 

 

Calculation Of Sales/Use Tax

1.

Total Selling Price

1.

 

2.

Trade-In Allowance

 

 

 

(Like-kind exchanges only)

2.

 

3.

Amount subject to tax

 

 

 

(Line 1 minus Line 2)

3.

 

4.

Amount of tax collected

 

 

 

 

 

(Line 3 multiplied by 7% (.07)

4.

 

 

 

 

 

Trade In Information

VIN # (Vehicle Identification Number) or HIN # (Hull Identification Number)

Year

Make

Model/Length

 

 

 

 

 

 

I hereby certify that the information shown on this certificate is true and correct, and the amount of Gross Retail Sales/Use Tax was collected from the purchaser. I also understand that any false information may result in the revocation of my Gross Retail Sales/Use Tax Certificate.

Date:

 

Printed Name of Seller:

 

 

Signature of Seller:

 

 

 

Title:

Instructions for completing Form ST-108, Certificate of Gross Retail

or Use Tax on the Purchase of a Motor Vehicle or Watercraft.

INDIANA CODE 6-2.5-9-6 requires that a person titling a vehicle or watercraft present certification indicating the state gross sales and use tax has been paid; otherwise the payment of the tax must be made directly to a Bureau of Motor Vehicles license branch.

The ST-108 allows the dealer to indicate the amount of tax collected from the purchaser. The dealer is then required to submit the sales/use tax to the Department of Revenue on a sales and use tax report.

If an exemption from the tax is claimed, the purchaser and the dealer must complete Form ST-108E and submit it to the license branch at the time of licensing. ST-108E serves as an affidavit of exemption by the purchaser and lists the exemptions available to qualified purchases.

Seller Information

NAME OF DEALER: Indicate the name of the dealer as it appears on the Registered Retail Merchant Certificate (RRMC).

FID # (Federal Identification Number): Indicate the Federal Identification Number of the dealer, if applicable.

Dealer’s License #: Indicate the Dealer’s License Number(seven digits) as it appears on the Dealer’s License Certificate.

RRMC # (same as TID # - 10 Digits + LOC # - 3 Digits): Indicate the Indiana Taxpayer Identification Number and Location Number as it appears on the Registered Retail Merchant Certificate. This number must be in the following format: 0001234567-001. If this number is not present or not in this format the ST-108 WILL BE REJECTED by the license branch and the purchaser will have to return to the seller to obtain the valid number.

Address of Dealer: Indicate the address of the dealer as it appears on the Registered Retail Merchant Certifi- cate.

Vehicle Identification Information

VIN or HIN ID #: Enter the Vehicle ID # (VIN) or the Hull ID # (HIN).

YEAR: Indicate the year the motor vehicle or watercraft was manufactured.

MODEL # OR WATERCRAFT LENGTH: If a motor vehicle is being sold indicate the model name for the vehicle. If a watercraft is being sold indicate the length of the craft.

Calculation of Sales/Use Tax

TOTAL SELLING PRICE: When determining the total selling price include all delivery, make ready, repair, or other costs incurred prior to transfer to the buyer. Federal excise tax is NOT included.

TRADE-IN ALLOWANCE: The trade-in allowance exemption is for like-kind vehicles or watercraft only. (i.e. A boat may be traded for a car; however, the value of the non like-kind items do not reduce the taxable selling price).

You must also indicate the make, model, year, and ID # of the trade-in vehicle or watercraft.

AMOUNT SUBJECT TO TAX: Line 1 minus Line 2 results in the amount on which the sales/use tax will be calcu- lated.

AMOUNT OF TAX COLLECTED: Line 3 multiplied by 7% or .07 equals the amount to be collected by the seller.

Signature Section: The Seller must sign the ST-108 certifying seller has collected the sales/use tax and will forward it to the Department of Revenue with the Sales/Use Tax Return. Failure to sign the ST-108 will result in the rejection of the form by the license branch and the purchaser will have to return to the seller for the signature.

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Document Specifics

Fact Name Details
Purpose of Form The ST-108 certifies that gross retail or use tax has been paid on the purchase of a motor vehicle or watercraft in Indiana.
Governing Law Indiana Code 6-2.5-9-6 mandates the presentation of this certification when titling a vehicle or watercraft.
Tax Calculation The form requires the calculation of sales/use tax based on the total selling price, trade-in allowance, and applicable tax rate of 7%.
Signature Requirement The seller must sign the ST-108 to certify the tax collection; failure to do so will result in the form being rejected.

St 108: Usage Instruction

Filling out the ST-108 form is a straightforward process that requires attention to detail. This form is essential for certifying that the sales tax on a motor vehicle or watercraft purchase has been paid. After completing the form, it must be submitted to the appropriate Bureau of Motor Vehicles license branch along with any required documentation.

  1. Dealer Information: Write the name of the dealer as it appears on the Registered Retail Merchant Certificate.
  2. Dealer’s RRMC #: Enter the Indiana Taxpayer Identification Number in the format of 10 digits followed by 3 digits (e.g., 0001234567-001).
  3. Dealer’s TID#: Fill in the 10-digit Taxpayer Identification Number.
  4. Dealer’s LOC#: Provide the 3-digit Location Number.
  5. Dealer’s FID #: Enter the 9-digit Federal Identification Number, if applicable.
  6. Dealer’s License Number: Write the seven-digit Dealer’s License Number.
  7. Address of Dealer: Fill in the dealer's address, including city, state, and zip code.
  8. Purchaser Information: Enter the name of the purchaser(s) and their address, including city, state, and zip code.
  9. Vehicle Identification Information: Provide the Vehicle Identification Number (VIN) or Hull Identification Number (HIN), year, make, and model/length of the vehicle or watercraft.
  10. Calculation of Sales/Use Tax:
    • Line 1: Total Selling Price - Include all costs except federal excise tax.
    • Line 2: Trade-In Allowance - Only for like-kind exchanges; provide details of the trade-in.
    • Line 3: Amount Subject to Tax - Calculate by subtracting Line 2 from Line 1.
    • Line 4: Amount of Tax Collected - Multiply Line 3 by 7% (0.07).
  11. Trade-In Information: If applicable, provide the VIN or HIN, year, make, and model/length of the trade-in vehicle or watercraft.
  12. Certification: The seller must sign and print their name, along with their title, certifying that the information is accurate and that sales/use tax has been collected.

Learn More on St 108

What is the purpose of the ST-108 form?

The ST-108 form is a certificate used in Indiana to confirm that the gross retail or use tax has been paid on the purchase of a motor vehicle or watercraft. When someone buys a vehicle or watercraft, they must present this form when titling the item. It ensures that the appropriate tax has been collected by the dealer, which is then submitted to the Indiana Department of Revenue. Without this form, buyers may have to pay the tax directly at a Bureau of Motor Vehicles license branch.

How do I complete the ST-108 form?

Completing the ST-108 form involves several key steps:

  1. Seller Information: Fill in the dealer's name, Federal Identification Number, Dealer's License Number, and the Registered Retail Merchant Certificate Number. Ensure that these details match what is on official documents.
  2. Purchaser Information: Provide the name and address of the purchaser. This should be printed or typed clearly.
  3. Vehicle Identification: Enter the Vehicle Identification Number (VIN) or Hull Identification Number (HIN), along with the year, make, and model of the vehicle or the length of the watercraft.
  4. Tax Calculation: Calculate the total selling price, subtract any trade-in allowance, and determine the amount subject to tax. The tax collected is 7% of this amount.
  5. Signature: The seller must sign and date the form to certify that the tax was collected. Without a signature, the form will be rejected.

What happens if I do not have the ST-108 form when titling my vehicle or watercraft?

If you do not present the ST-108 form when titling your vehicle or watercraft, you may be required to pay the gross retail or use tax directly at the Bureau of Motor Vehicles license branch. This could lead to additional delays in the titling process. It is crucial to ensure that you have this form completed and signed by the dealer before heading to the license branch.

What if I qualify for a tax exemption?

If you believe you qualify for a tax exemption, both you and the dealer need to complete Form ST-108E. This form serves as an affidavit of exemption and lists the types of exemptions available for qualified purchases. You must submit this exemption form at the time of licensing, along with any other required documents. It’s important to understand the criteria for exemptions to ensure you are eligible before attempting to claim one.

Common mistakes

Filling out the ST-108 form can be a straightforward process, but several common mistakes can lead to complications. One frequent error occurs when individuals fail to provide the correct Registered Retail Merchant Certificate Number (RRMC #). This number must be formatted correctly, including both the ten-digit Taxpayer Identification Number (TID#) and the three-digit Location Number (LOC#). If this number is missing or incorrect, the form will be rejected, requiring the purchaser to return to the dealer for clarification.

Another mistake involves the Federal Identification Number (FID #). Some individuals neglect to include this information, even when it is applicable. The FID # is essential for the dealer's identification and must be accurately reflected on the form. Omitting this detail can lead to delays in processing the vehicle or watercraft title.

Accurate vehicle identification is crucial. Many people mistakenly enter incorrect or incomplete Vehicle Identification Numbers (VIN) or Hull Identification Numbers (HIN). These numbers are unique to each vehicle or watercraft and must be entered precisely as they appear. Errors in this section can cause significant issues when attempting to register the vehicle with the Bureau of Motor Vehicles.

Additionally, individuals often miscalculate the total selling price. When determining this figure, all costs associated with the sale, such as delivery and preparation fees, must be included. However, federal excise tax should not be part of this calculation. Misunderstanding what to include can result in incorrect tax assessments.

Trade-in allowances present another area where mistakes can occur. The form requires specific information about the trade-in vehicle or watercraft, including its make, model, year, and identification number. Failing to provide this information or incorrectly claiming a trade-in allowance can lead to incorrect tax calculations. Only like-kind exchanges qualify for this allowance, and confusion about this rule can lead to further complications.

Some individuals forget to sign the ST-108 form. The seller's signature is essential, as it certifies that the sales/use tax has been collected and will be forwarded to the Department of Revenue. Without a signature, the license branch will reject the form, necessitating a return to the dealer for resolution.

Finally, a lack of attention to detail can lead to overall inaccuracies on the form. Each section must be carefully reviewed for completeness and correctness. Simple mistakes, such as typographical errors or missing information, can cause significant delays in processing the vehicle or watercraft title. Ensuring that all details are accurate is vital for a smooth transaction.

Documents used along the form

When dealing with the ST-108 form, there are several other forms and documents that may be necessary. Each serves a specific purpose in the process of purchasing and titling a vehicle or watercraft. Here’s a list of related forms that you might need to consider.

  • Form ST-108E: This form is used to claim an exemption from sales or use tax. Both the purchaser and dealer must complete it to submit at the time of licensing.
  • Form ST-109: This form is a sales tax exemption certificate for certain purchases, allowing buyers to avoid paying sales tax under specific conditions.
  • Form BMV 3774: This is the application for a certificate of title for a vehicle or watercraft. It is required to officially register ownership with the Bureau of Motor Vehicles.
  • Form BMV 2883: This form is used for a vehicle or watercraft transfer. It documents the change of ownership and is necessary for the new owner to register the asset.
  • Form BMV 588: This is the affidavit of vehicle identification number (VIN) inspection. It is required if the VIN is not visible or if the vehicle is coming from out of state.
  • Form BMV 3775: This form is used to apply for a duplicate title. If the original title is lost or damaged, this form helps to obtain a replacement.
  • Form BMV 421: This is the application for a watercraft title. It is specifically designed for registering boats and other watercraft with the Bureau of Motor Vehicles.
  • Form ST-105: This is a sales tax exemption certificate for resale. It allows businesses to purchase items without paying sales tax if they intend to resell them.

Being aware of these forms can streamline the process of purchasing and titling your vehicle or watercraft. Ensure that you have all necessary documents ready to avoid any delays or complications.

Similar forms

The ST-108 form is similar to the ST-108E form, which serves as an affidavit of exemption for certain purchases. This document is completed by both the purchaser and the dealer when a buyer claims an exemption from the sales tax. Like the ST-108, the ST-108E requires detailed information about the purchaser and the vehicle or watercraft. Both forms must be submitted to the Bureau of Motor Vehicles at the time of licensing to ensure compliance with Indiana tax regulations.

Another document that shares similarities with the ST-108 is the Form ST-1, which is used for the Indiana Sales Tax Exemption Certificate. This form allows purchasers to claim an exemption from sales tax for specific types of transactions. Like the ST-108, the ST-1 requires the buyer to provide their identification information and details about the items being purchased. Both forms aim to ensure that proper documentation is maintained for tax purposes, helping to prevent any misunderstandings regarding tax liabilities.

The Form ST-105 is also akin to the ST-108. This document is a general sales tax exemption certificate that allows buyers to purchase goods without paying sales tax under certain conditions. Similar to the ST-108, the ST-105 requires the purchaser to provide their information and the nature of the transaction. Both forms play a crucial role in the management of sales tax in Indiana, ensuring that tax obligations are met while allowing for valid exemptions.

Lastly, the Form ST-109 is comparable to the ST-108 as it is used for the resale of goods. This form allows a buyer to purchase items without paying sales tax if they intend to resell them. Both the ST-108 and ST-109 require information about the seller, the purchaser, and the items involved in the transaction. They both serve to streamline the sales tax process, ensuring that the appropriate taxes are collected or exempted based on the nature of the transaction.

Dos and Don'ts

When filling out the ST-108 form, it is crucial to ensure accuracy and compliance. Here are six important dos and don’ts to keep in mind:

  • Do use the correct format for the RRMC number. It must be in the format of 0001234567-001.
  • Do include all necessary vehicle identification information, including the VIN or HIN.
  • Do ensure the total selling price includes all associated costs, excluding federal excise tax.
  • Do sign the form. A missing signature will lead to rejection by the license branch.
  • Don’t leave any fields blank. Every section must be filled out completely.
  • Don’t use a trade-in allowance for non like-kind exchanges. Only like-kind vehicles or watercraft qualify.

Misconceptions

Understanding the ST-108 form can be tricky, and many people hold misconceptions about its purpose and requirements. Here are nine common misunderstandings clarified:

  1. The ST-108 is only for new vehicles. This form is used for both new and used vehicles, as well as watercraft. It applies to any motor vehicle or watercraft purchase that requires sales or use tax certification.
  2. All dealers can fill out the ST-108 without any specific information. Dealers must provide specific details such as their Registered Retail Merchant Certificate Number, Federal Identification Number, and Dealer’s License Number. Missing this information can lead to rejection of the form.
  3. Trade-ins automatically reduce the taxable amount. Only like-kind exchanges qualify for a trade-in allowance. For example, trading a boat for a car does not reduce the taxable selling price.
  4. The ST-108 is not necessary if the tax is paid directly at the Bureau of Motor Vehicles. If the tax is not certified through the ST-108, it must be paid directly to the Bureau of Motor Vehicles. This form serves as proof that the tax has been collected by the dealer.
  5. The seller's signature is optional. The seller must sign the ST-108. Without a signature, the form will be rejected, requiring the purchaser to return to the dealer for a valid form.
  6. The ST-108 can be completed after the sale. This form must be completed at the time of sale. It certifies that the sales/use tax has been collected and is necessary for titling the vehicle or watercraft.
  7. Only the purchaser needs to provide information on the form. Both the dealer and the purchaser must provide their respective information, ensuring that all details are accurate and complete.
  8. The ST-108 is the same as the ST-108E. These forms serve different purposes. The ST-108 certifies tax collection, while the ST-108E is used for claiming tax exemptions.
  9. Once completed, the ST-108 does not need to be submitted anywhere. The dealer is responsible for submitting the sales/use tax collected to the Department of Revenue on a sales and use tax report.

By clearing up these misconceptions, individuals can better navigate the requirements of the ST-108 form and ensure a smoother transaction process when purchasing a vehicle or watercraft.

Key takeaways

Filling out the ST-108 form is a crucial step in the process of purchasing a motor vehicle or watercraft in Indiana. Here are some key takeaways to ensure you complete it correctly:

  • Accurate Information is Essential: Make sure to provide accurate details for both the dealer and the purchaser. This includes names, addresses, and identification numbers.
  • Follow the Format: The RRMC number must follow a specific format: 10 digits for TID and 3 digits for LOC. If this is incorrect, the form will be rejected.
  • Include All Costs: The total selling price should encompass all costs associated with the sale, except for federal excise tax. This means including delivery and preparation costs.
  • Trade-In Allowance: Only like-kind exchanges qualify for a trade-in allowance. For example, trading a boat for a car does not reduce the taxable amount.
  • Calculate the Tax Correctly: The amount of tax collected is calculated by multiplying the amount subject to tax by 7%. Ensure this calculation is accurate to avoid issues.
  • Signature Requirement: The seller must sign the ST-108. Without this signature, the form will be rejected, and the purchaser will need to return to the dealer for a valid form.
  • Exemptions: If claiming an exemption, both the purchaser and dealer must complete Form ST-108E, which should be submitted at the time of licensing.
  • Timely Submission: Dealers are required to submit the sales/use tax to the Department of Revenue promptly. Delays can lead to penalties or complications.

Completing the ST-108 form accurately and promptly is vital for a smooth transaction. Take the time to review each section carefully to avoid any issues down the line.