PaulaM
Employee Tax Expert

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Yes, the goods purchased through PayPal would be included in the total of your online purchases for use tax. But only if you paid sales tax that was less then 7%.

From Indiana link below.

'Paid sales tax of seven percent or more to the other state, you do not owe use tax to Indiana. Paid sales tax of less than seven percent to the other state, your Indiana use tax will be the difference between the Indiana seven percent use tax and the amount you paid to the other state'.

https://www.in.gov/dor/4006.htm

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