When it comes to sales tax, there are a few things that businesses need to be aware of. For example, in the state of Iowa, there is a $100,000 threshold for nexus. This means that if your business exceeds this amount in sales within the state, you will be required to collect and remit sales tax. However, if you submit a reseller certificate to the business or provider supplying the good or service, you can avoid paying any sales tax. The liability for sales taxes then falls on the shoulders of the reseller.
There are two ways in which a reseller’s certificate can be shared: by submitting an existing certificate to the supplier or by creating a new certificate on third-party platforms such as Avalara or Tax-exempt. It’s important to note that the owners of a valid certificate lie with the supplier–not with the reseller. In order for a certificate to be considered valid, all necessary steps must be taken by both parties involved.
Lastly, it’s worth mentioning that Iowa has a 6% sales tax rate. If you’re selling products or services in this state and need more information about registering for a permit, feel free to reach out!
Sales tax rate – 6.000%
Information required to register for a sales tax permit in the state of Iowa
1) Personal identification info (SSN, address, etc.)
2) Business identification info (EIN, address, etc.)
3) Business entity type (sole-proprietor, corporation, LLC, etc.)
4) Date you started sell in Iowa
5) Types of products or services sold
Certain purchases and rentals can be made without the need to pay sales tax. You can use nails, fabric and wood to make a chair, or items that you will rent out as tangible personal property, real property, or services.
You have two options to share a reseller’s certification by the reseller. Either submit an existing reseller certificate or create a reseller certificate through third-party platforms like Avalara, Tax exempt, etc.
The supplier is the owner of the certificate. All steps must be taken to ensure the certificate remains valid.
Iowa is a state in the Midwestern region of the United States, bordered by the Mississippi River to the east and the Missouri River and Big Sioux River to the west. It is bordered by six states: Wisconsin to the northeast, Illinois to the east and southeast, Missouri to the south, Nebraska to the west, South Dakota to the northwest, and Minnesota to the north.
During the 18th and early 19th centuries, Iowa was a part of French Louisiana and Spanish Louisiana; its state flag is patterned after the flag of France. After the Louisiana Purchase, people laid the foundation for an agriculture-based economy in the heart of the Corn Belt. In the latter half of the 20th century, Iowa’s agricultural economy transitioned to a diversified economy of advanced manufacturing, processing, financial services, information technology, biotechnology, and green energy production.
Iowa is the 26th most extensive in total area and the 31st most populous of the 50 U.S. states, with a population of 3,190,369, according to the 2020 census. The state’s capital, most populous city, and largest metropolitan area fully located within the state is Des Moines. A portion of the larger Omaha, Nebraska, metropolitan area extends into three counties of southwest Iowa. Iowa has been listed as one of the safest U.S. states in which to live.Source