Retailer’s Use Tax Permit

About

Every out-of-state retailer who has a presence in Iowa and sells tangible personal property or taxable services in Iowa must obtain a retailer’s use tax permit.

Code Citation IC 423.5; IC 423.14A

Who Applies Every out-of-state retailer who has \”nexus\” in Iowa and makes sales of tangible personal property or taxable services in Iowa must obtain a retailer\’s use tax permit. The permit is free of charge. \”Nexus\” includes a physical presence such as a store, warehouse, or sales staff.

When To Apply Prior to making taxable sales in Iowa.

Initial Requirements Depending on the amount of tax collected, a return is due annually, quarterly, or monthly. They are filed electronically through eFile & Pay.

Duration Once issued, a retailer\’s use tax permit is effective until it is canceled by the retailer or revoked by the Department of Revenue.

Processing Time Processing the permit application takes 4-6 weeks. Submitting the application electronically on the Department website speeds the process. Tax collection may begin when the permit application is submitted to the Department; a business does not have to wait to receive the tax permit number.

Fee Structure None.

Renewal Requirements Does not pertain.

Exam Does not pertain.

Additional Information When economic Nexus has been achieved, the Retailer\’s Use permit must be changed to a Sales Tax Permit. Economic Nexus occurs when sales equal or exceed $100,000 in a preceding or current calendar year.