Sales Tax Permit
Anyone making taxable sales in Iowa from an Iowa location must obtain a sales tax permit. A sales tax permit is not a license to purchase items free of tax. It is a permit to collect sales tax only. A 6% tax is imposed upon all sales of tangible personal property and various taxable services. In some cases a 1% local option sales tax may also be applicable.
Code Citation IC 423.2; IC 423.14A
Who Applies Anyone making taxable sales in Iowa from an Iowa location must obtain the sales tax permit. Anyone with economic Nexus must obtain a sales tax permit.
When To Apply Prior to making taxable sales.
Initial Requirements In the case of multiple business locations, a permit must be obtained for each Iowa business location, but the retailer can choose to file a consolidated return. An operator who places vending or other coin-operated machines in different locations only needs one permit.
Duration Once issued, a sales 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. Sales and sales tax collection may begin when the permit application is submitted to the Department; a business does not have to wait to receive the sales tax permit number.
Fee Structure None.
Renewal Requirements Does not pertain.
Exam Does not pertain.
Additional Information Anyone making taxable sales in Iowa must obtain the sales tax permit. Economic Nexus occurs when sales into Iowa equal or exceed $100,000 in a preceding or current calendar year.
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