Do you need to get a Sales Tax certificate in Iowa?
You may need a Sales Tax Certificate if any of the following apply your business:
- You rent or lease property (other than real property) to an end user within the state of Iowa
- Your business delivers merchandise in the state of Iowa using its own trucks
- You have a distribution location such as a storage area or warehouse space
- You have employees physically present in Iowa (including independent contractors, Sales persons, representatives, or agents in or out of state)
- Your business has economic presence (businesses who make over $100,000 in sales annually or more than 200 transactions)
- Your business installs property it sells in Iowa
- Your business has taxable services in the state of Iowa
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Iowa?
As a wholesale company conducting business in the state of Iowa, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you have to collect Sales Taxes for shipping charges?
If you list shipping charges separately then you do not have to collect sales tax, but if you lump them in with the price of the merchandise sold then you would have to.
Is there sales tax on drop shipments in the state of Iowa?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Iowa may or may not be required to have sales tax added
Are there any exemptions to taxable items sold?
Groceries, raw materials and machinery, certain items used in agriculture or manufacturing, medical devices, newspapers, and custom downloadable software are tax exempt