reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 204 - Rules Necessary to Implement the Streamlined Sales and Use Tax Agreement › Rule 701-204.6 - Relief From Liability for Reliance on Taxability Matrix

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa provides and maintains a taxability matrix in a database
				  that is in a downloadable format approved by the governing board. All sellers
				  and certified service providers are relieved from liability to Iowa and any
				  jurisdiction imposing a local option tax under Iowa Code chapter 423B or 423E
				  for having charged and collected the incorrect amount of sales or use tax
				  resulting from the seller's or certified service provider's reliance on
				  erroneous data provided by that taxability matrix.
This rule is intended to implement Iowa Code chapter 423,
				  subchapter IV.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 204 - Rules Necessary to Implement the Streamlined Sales and Use Tax Agreement › Rule 701-204.7 - Effective Dates of Taxation Rate Increases or Decreases When Certain Services Are Furnished

Current through Register Vol. 47, No. 3, July 24, 2024
Certain taxable services are usually furnished over an
				  extended period of time (e.g., utilities, janitorial, and ministorage
				  services), and the user of such a service is billed at regular intervals (e.g.,
				  monthly or quarterly). The beginning date when a rate change is imposed on the
				  sales price of this type of service differs, depending upon whether a rate
				  increase or rate decrease is involved. If the rate of taxation has been
				  increased, the beginning date of the rate change shall be the first day of the
				  first billing period occurring on or after the effective date of the rate
				  increase. If the rate of taxation has been decreased, the new rate shall apply
				  to bills rendered on or after the effective date of the rate decrease.
This rule is intended to implement Iowa Code chapter 423,
				  subchapter IV.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 205 - Sourcing of Taxable Services, Tangible Personal Property, and Specified Digital Products › Rule 701-205.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of this chapter, the following terms shall have
				  the same definition as in Iowa Code section
				  423.1:
"Agreement"
means the same as defined in
				  Iowa Code section 423.1.
"Department"
means the same as defined in
				  Iowa Code section 423.1.
"First use of a service"
means the same as
				  defined in Iowa Code section
				  423.1.
"First use of a service performed on tangible
				  personal property"
means receiving, with the ability to use, whether
				  or not actually used, the tangible personal property on which the taxable
				  service was performed.
"Governing board"
means the same as defined
				  in Iowa Code section 423.1.
"Receive"
or
"receipt,"
with regard to sales of services, means making "first use of services" pursuant
				  to this chapter. For purposes of receipt of services performed on tangible
				  personal property under rule
				  701-205.3 (423), the location
				  (or locations) where the purchaser (or the purchaser's donee) regains
				  possession or can potentially make first use of the tangible personal property
				  on which the seller performed the service is the location (or locations) of the
				  receipt of the service. The location where the seller performs the service is
				  not determinative of the location where the purchaser receives the service. The
				  terms "receive" and "receipt" do not include possession by a shipping company
				  on behalf of the purchaser; this is treated as though the retailer delivered to
				  the purchaser the tangible personal property on which the service was
				  performed. When a shipping company delivers tangible personal property on which
				  the service was performed, the service is deemed "received" where the shipping
				  company delivers the tangible personal property to the purchaser. For the
				  purposes of sales of personal care services, the location (or locations) where
				  the service is performed on the purchaser (or the purchaser's donee) is the
				  location where the purchaser receives the service.
"Retailer"
means the same as defined in Iowa
				  Code section 423.1.
"Seller"
means the same as defined in Iowa
				  Code section 423.1.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 205 - Sourcing of Taxable Services, Tangible Personal Property, and Specified Digital Products › Rule 701-205.4 - Sourcing Rules for Personal Care Services

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definition.
"Personal care services" means services that are
				performed on the physical human body. Examples of personal care services
				governed by this rule include, but are not limited to:
a. Barber and beauty services;
b. Massage, excluding services provided by
				massage therapists licensed under Iowa Code chapter 152C;
c. Reflexology;
d. Reducing salons; and
e. Tanning beds and salons.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 206 - Bundled Transactions › Rule 701-206.1 - Taxability of Bundled Transactions

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of a bundled transaction is subject to tax if
				  any product included in the bundled transaction would be taxable if sold
				  separately. For purposes of this rule, products include tangible personal
				  property, services, and specified digital products and exclude real property
				  and services to real property.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 206 - Bundled Transactions › Rule 701-206.1 - Taxability of Bundled Transactions

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of a bundled transaction is subject to tax.
				  For purposes of this rule, products include tangible personal property,
				  services, and specified digital products and exclude real property and services
				  to real property.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 206 - Bundled Transactions › Rule 701-206.2 - Bundled Transaction

Current through Register Vol. 47, No. 3, July 24, 2024
A "bundled transaction" is the retail sale of two or more
				  products where the products are otherwise distinct and identifiable and the
				  products are sold for one nonitemized price.
(1)
Distinct and identifiable
				product.
"Distinct and identifiable product" does not include any of
				the following:
a. Packaging or other materials
				that accompany the retail sale of the products and are incidental or immaterial
				to the retail sales of the products. Packaging or other materials include, but
				are not limited to, containers, boxes, sacks, bags, bottles, envelopes,
				wrapping, labels, tags, twine, garment hangers, and instruction guides.
EXAMPLE 1: Seller Z provides paper and plastic bags for
				  purchasers to use to carry away their purchased items. The bags are incidental
				  or immaterial to the retail sales of the products and are not distinct and
				  identifiable products. Seller Z's retail sale of purchased items in the
				  provided bags does not constitute a bundled transaction.
EXAMPLE 2: Seller X sells brownies and offers purchasers the
				  option of adding a premium box for an increased price. The sales price of the
				  brownies is the same whether they are sold on their own or with a standard box,
				  but the total sales price increases if the purchasers select a premium box. The
				  premium box is distinct and identifiable from the food product because it
				  requires separate shopping preferences and product selection by the purchaser
				  and is not standard with every order of food product. The retail sale of the
				  brownies and the premium box may constitute a bundled transaction if the other
				  requirements pursuant to Iowa Code section
				  423.2(8)
				   are satisfied.
EXAMPLE 3: Seller A offers purchasers the option to buy
				  reusable, long-lasting grocery bags to use to carry away purchased grocery
				  items. If the reusable grocery bags are purchased with other items and
				  separately itemized, they are taxable and the sale does not constitute a
				  bundled transaction.
b. A
				product that is provided free of charge to the consumer in conjunction with the
				required purchase of another product, if the sales price of the other product
				does not vary depending on whether the product provided free of charge is
				included in the transaction. Examples include a free car wash with the purchase
				of gasoline or free dinnerware with the purchase of groceries.
c. Items specified in the definition of
				"sales price" in Iowa Code section
				423.1.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 206 - Bundled Transactions › Rule 701-206.2 - Bundled Transaction

Current through Register Vol. 47, No. 3, July 24, 2024
A "bundled transaction" is the retail sale of two or more
				  products where the products are otherwise distinct and identifiable and the
				  products are sold for one nonitemized price.
(1)
Distinct and identifiable
				product.
"Distinct and identifiable product" does not include any of
				the following:
a. Packaging or other materials
				that accompany the retail sale of the products and are incidental or immaterial
				to the retail sales of the products. Packaging or other materials include but
				are not limited to containers, boxes, sacks, bags, bottles, envelopes,
				wrapping, labels, tags, twine, garment hangers, and instruction guides.
EXAMPLE 1: Seller Z provides paper and plastic bags for
				  purchasers to use to carry away their purchased items. The bags are incidental
				  or immaterial to the retail sales of the products and are not distinct and
				  identifiable products. Seller Z's retail sale of purchased items in the
				  provided bags does not constitute a bundled transaction.
EXAMPLE 2: Seller X sells brownies and offers purchasers the
				  option of adding a premium box for an increased price. The sales price of the
				  brownies is the same whether they are sold on their own or with a standard box,
				  but the total sales price increases if the purchasers select a premium box. The
				  premium box is distinct and identifiable from the food product because it
				  requires separate shopping preferences and product selection by the purchaser
				  and is not standard with every order of food product. The retail sale of the
				  brownies and the premium box may constitute a bundled transaction if the other
				  requirements pursuant to Iowa Code section
				  423.2(8)  are
				  satisfied.
EXAMPLE 3: Seller A offers purchasers the option to buy
				  reusable, long-lasting grocery bags to use to carry away purchased grocery
				  items. If the reusable grocery bags are purchased with other items and
				  separately itemized, they are taxable and the sale does not constitute a
				  bundled transaction.
b. A
				product that is provided free of charge to the consumer in conjunction with the
				required purchase of another product, if the sales price of the other product
				does not vary depending on whether the product provided free of charge is
				included in the transaction. Examples include a free car wash with the purchase
				of gasoline or free dinnerware with the purchase of groceries.
c. Items specified in the definition of
				"sales price" in Iowa Code section
				423.1.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Incorporation of definitions.
To the extent they are
				consistent with Iowa Code chapter 423 and this chapter, all other words and
				phrases used in this chapter mean the same as defined in Iowa Code sections
				423.1 and
				423.14A and rule
				701-200.1(423).
(2)
Chapter-specific definitions.
For purposes of this chapter,
				unless the context otherwise requires:
"Gross revenue from sales"
means all revenue
				  from Iowa sales.
"Iowa sales"
means the same as defined in
				  Iowa Code section 423.14A(1)
"a"
and includes all retail sales, whether taxable or exempt,
				  and other sales of tangible personal property, specified digital products, or
				  services otherwise sold into Iowa or for delivery into Iowa, including
				  wholesale or sale for resale. "Iowa sales" includes sales made through a
				  marketplace.
"Marketplace"
means any physical or
				  electronic place, including but not limited to a store, booth, Internet
				  website, catalog, television or radio broadcast, or dedicated sales software
				  application, where a marketplace seller sells or offers for sale tangible
				  personal property, or specified digital products, or where services are offered
				  for sale into Iowa regardless of whether the tangible personal property,
				  specified digital product, marketplace seller, or marketplace has a physical
				  presence in Iowa.
"Physical presence in Iowa"
means the
				  activities described in Iowa Code section
				  423.1(48)
"a"
(1).
"Remote seller"
means a retailer that does
				  not have a physical presence in Iowa but that makes sales of tangible personal
				  property, specified digital products, or services that are sourced to
				  Iowa.
"Retailer"
means the same as defined in Iowa
				  Code section 423.1(47).
				  "Retailer" includes a marketplace facilitator that meets or exceeds the sales
				  threshold and includes a remote seller.
"Sales threshold"
means the revenue level
				  that triggers collection and remittance obligations for Iowa sales tax and
				  local option tax as described in Iowa Code section
				  423.14A(3):
				  $100,000 or more in gross revenue from Iowa sales into Iowa in either the
				  current or immediately prior calendar year.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.2 - Administration; Incorporation of 701-chapter 11

Current through Register Vol. 47, No. 3, July 24, 2024
Except as otherwise stated in this chapter, the requirements
				  of 701-Chapter 11 apply to all retailers, including remote sellers and
				  marketplace facilitators, required to collect and remit sales tax under this
				  chapter.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.3 - Filing Returns; Payment of Tax; Penalty and Interest; Incorporation of 701-chapter 202

Current through Register Vol. 47, No. 3, July 24, 2024
Except as otherwise stated in this chapter, the filing
				  requirements of 701-Chapter 202 apply to all retailers, including remote
				  sellers and marketplace facilitators, required to collect and remit sales tax
				  under this chapter.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.4 - Permits; Incorporation of 701-chapter 201

Current through Register Vol. 47, No. 3, July 24, 2024
Except as otherwise stated in this chapter, the permit
				  requirements of 701-Chapter 201 apply to all retailers, including remote
				  sellers and marketplace facilitators, required to collect and remit Iowa sales
				  tax and applicable local option sales tax under this chapter.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.5 - Retailers With Physical Presence in Iowa

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Sales
				threshold inapplicable.
The sales threshold does not apply to any
				seller, marketplace facilitator, or other retailer that has physical presence
				in Iowa. A seller, marketplace facilitator, or other retailer with physical
				presence in Iowa must collect and remit Iowa sales tax and any applicable local
				option sales tax pursuant to Iowa Code section
				423.14 even if the sales
				threshold is not met.
(2)
Mixed marketplace and nonmarketplace sales.
A retailer with
				physical presence in Iowa who makes both marketplace and nonmarketplace sales
				must do the following:
a. Collect Iowa sales
				tax and any applicable local option tax on any taxable sales on which the
				marketplace does not collect tax.
b. Report on its Iowa sales tax return its
				gross revenue from all Iowa sales, including any marketplace sales on which the
				marketplace facilitator collected Iowa sales tax and applicable local option
				tax, regardless of whether the sales threshold is met.
EXAMPLE: Seller X is an Iowa-based business, with property
				  and personnel located in Iowa. Seller X has $80,000 in gross revenue from Iowa
				  sales. Seller X makes $10,000 of gross revenue from Iowa sales through a
				  marketplace facilitator that collects Iowa sales tax and applicable local
				  option sales tax. The remaining $70,000 in gross revenue comes from Iowa sales
				  made at Seller X's storefront in Iowa. Seller X must collect and remit Iowa
				  sales tax and applicable local option sales tax on the $70,000 in
				  nonmarketplace sales. On its Iowa sales tax return, Seller X should report
				  $80,000 in gross revenue from sales. Seller X may take a deduction on its Iowa
				  sales tax return of $10,000 for sales on which the marketplace collected Iowa
				  sales tax and applicable local option sales tax.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.6 - Remote Sellers-registration and Collection Obligations

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Combined Iowa sales from all sources.
The sum of the total
				amount of Iowa sales through marketplace and nonmarketplace Iowa sales
				determines whether remote sellers meet the sales threshold.
(2)
Remote sellers with Iowa sales
				solely through marketplaces.
If a remote seller meets the sales
				threshold but only makes retail sales in Iowa through marketplaces, the remote
				seller's registration and collection obligations depend on whether all of the
				marketplace facilitators through which the remote seller makes Iowa sales are
				registered to collect Iowa sales tax and applicable local option tax.
a.
Registered marketplace
				facilitators.
If all the marketplace facilitators used by the remote
				seller to make taxable Iowa sales collect Iowa sales tax and applicable local
				option sales tax, the remote seller does not have to collect the tax. The
				marketplace facilitator will report and pay Iowa sales tax and applicable local
				option sales tax on a sales tax return filed by the marketplace facilitator.
EXAMPLE: Seller X has $200,000 in gross revenue from Iowa
				  sales. Seller X makes all of its Iowa sales through a marketplace facilitator
				  that collects Iowa sales tax and applicable local option sales tax on sales.
				  Seller X does not need to register for an Iowa sales tax permit or file an Iowa
				  sales tax return. The marketplace facilitator will report the Iowa sales tax
				  and applicable local option sales tax on the marketplace facilitator's Iowa
				  sales tax return.
b.
Nonregistered marketplace facilitators.
If a marketplace
				facilitator is not required to or fails to register and collect tax in Iowa,
				remote sellers who exceed the sales threshold must obtain an Iowa sales tax
				permit, collect Iowa sales tax and applicable local option sales tax, and file
				Iowa sales tax returns for sales made on that marketplace.
EXAMPLE: Seller X has $200,000 in gross revenue from Iowa
				  sales. Seller X has $2,000 in gross revenue from sales on Marketplace Y and
				  $198,000 in gross revenue from sales on Marketplace Z. Marketplace Y meets the
				  sales threshold and is registered to collect and remit Iowa sales tax and
				  applicable local option sales tax in Iowa. Marketplace Z, however, has very few
				  low-cost Iowa sales, meets neither the gross revenue nor volume of sales
				  threshold, and is therefore not required to and does not collect tax on Iowa
				  sales. Seller X must collect Iowa sales tax and applicable local option sales
				  tax on retail sales sourced to Iowa that are made on Marketplace Z.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.7 - Marketplace Facilitators-registration and Collection Obligations

Current through Register Vol. 47, No. 3, July 24, 2024
A marketplace facilitator that meets the sales threshold must
				  collect and remit Iowa sales tax and applicable local option sales tax on all
				  taxable sales made through the marketplace facilitator's marketplace that are
				  sourced to Iowa. A marketplace facilitator must collect Iowa sales tax on all
				  taxable Iowa sales, regardless of the location or sales volume of a marketplace
				  seller that makes sales on a marketplace facilitator's marketplace.
EXAMPLE: M is a marketplace facilitator that meets the sales
				  threshold and therefore collects Iowa sales tax and applicable local option
				  sales tax on Iowa sales facilitated through M's marketplace. Seller S lists
				  soccer balls for sale on M's marketplace. A purchaser in Iowa buys a soccer
				  ball listed by S on M's marketplace. The soccer ball is delivered to the
				  purchaser's home address in Iowa. M must collect Iowa sales tax and applicable
				  local option sales tax on the sale of the soccer ball. The outcome is the same
				  regardless of whether S is located in Iowa and regardless of S's Iowa sales
				  volume.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.8 - Advertising on a Marketplace

Current through Register Vol. 47, No. 3, July 24, 2024
A marketplace seller does not sell or offer to sell tangible
				  personal property, a specified digital product, or a service on a marketplace
				  when merely advertising that product on a marketplace.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.9 - Commencement of Collection Obligation and Sales Tax Liability

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Commencement of collection obligation.
If a remote seller or
				marketplace facilitator without physical presence in Iowa did not exceed the
				sales threshold for the prior year and therefore does not collect sales tax in
				the current year, and exceeds the sales threshold in the current year, the
				remote seller or marketplace facilitator must collect Iowa sales tax and
				applicable local option sales tax starting on the first day of the next
				calendar month that starts at least 30 days from the day the remote seller or
				marketplace facilitator first exceeded the sales threshold. The remote seller
				or marketplace facilitator must collect tax through the end of the calendar
				year in which the sales threshold was met or exceeded as well as the entire
				next calendar year.
EXAMPLE: Company S, a remote seller, did not exceed the sales
				  threshold in 2018. On September 15, 2019, S exceeds the sales threshold for the
				  first time. S must register to collect Iowa sales tax and must begin collecting
				  Iowa sales tax and applicable local option sales tax on November 1, 2019. S
				  must continue to collect through at least December 31, 2020. S's sales volume
				  in 2020 and later years will determine whether S must collect Iowa sales tax
				  and applicable local option sales tax after December 31, 2020.
(2)
Commencement of sales
				tax liability.
If a remote seller or marketplace facilitator without
				physical presence in Iowa exceeds the sales threshold as described in subrule
				207.9(1), the remote seller or marketplace facilitator without physical
				presence in Iowa is not liable for any Iowa sales tax and applicable local
				option sales tax not collected beginning on January 1 of the current year
				through the day prior to the date the remote seller or marketplace facilitator
				without physical presence in Iowa is obligated to collect the tax as described
				in subrule 207.9(1). A purchaser will be liable for any use tax that accrues
				prior to the date the remote seller or marketplace facilitator without physical
				presence in Iowa is obligated to collect Iowa sales tax and applicable local
				option sales tax as described in subrule 207.9(1).
(3)
Permit registration.
If
				a remote seller or marketplace facilitator without physical presence in Iowa
				that makes taxable sales exceeds the sales threshold, the remote seller or
				marketplace facilitator without physical presence in Iowa must register for a
				sales and use tax permit under 701-Chapter 201 prior to the date the remote
				seller or marketplace facilitator without physical presence in Iowa is
				obligated to collect Iowa sales tax and applicable local option sales tax as
				described in subrule 207.9(1).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.10 - Retailers Registered and Collecting Who Fail to Meet or Exceed Sales Threshold

Current through Register Vol. 47, No. 3, July 24, 2024
If a retailer is registered to collect Iowa sales tax and
				  applicable local option sales tax and collects in year 1 and fails to meet or
				  exceed the sales threshold in year 2, the retailer must still collect all
				  applicable sales taxes in year 2. If the retailer does not meet or exceed the
				  sales threshold at any point in year 2, the retailer is not required to collect
				  and remit Iowa sales tax or applicable local option sales tax in year 3.
				  However, if a retailer is registered to collect, the retailer must continue
				  collecting regardless of the impact of the sales threshold. A retailer that
				  falls under the sales threshold may either submit sales tax returns
				  demonstrating it did not collect tax until a time in the future when the
				  retailer meets or exceeds the sales threshold or cancel its sales tax permit if
				  it wishes to cease collecting. If the retailer meets or exceeds the sales
				  threshold at any point thereafter, the retailer would need to register again in
				  accordance with 701-Chapter 201 and begin collecting in accordance with this
				  chapter.
EXAMPLE: Company S, a remote seller, exceeds the sales
				  threshold on June 25, 2019. S must collect Iowa sales tax and applicable local
				  option sales tax beginning August 1, 2019, and must collect for all of 2020. S
				  does not meet or exceed the sales threshold in 2020; therefore, S is not
				  obligated to collect sales tax on January 1, 2021. S may cease collection and
				  cancel its sales tax permit effective January 1, 2021.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.11 - Coupons; Incorporation of Rule 701-213.10 (423)

Current through Register Vol. 47, No. 3, July 24, 2024
Coupons and other discounts offered by marketplace
				  facilitators and remote sellers are retailers' discounts, which reduce the
				  sales price and thus the taxable amount of a sale. The requirements of rule
				  701-213.10 (423) apply to
				  marketplace facilitators and remote sellers in the same manner that those
				  requirements apply to retailers.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.12 - Customer Returns Marketplace Purchase Directly to Marketplace Seller

Current through Register Vol. 47, No. 3, July 24, 2024
(1) If a
				marketplace facilitator collects Iowa sales tax and applicable local option
				sales tax on the sale and the customer returns the item directly to the
				marketplace seller, either the marketplace facilitator or marketplace seller
				shall refund the full price paid by the customer, including all tax collected
				by the marketplace facilitator, upon acknowledgement of receipt of the item by
				the marketplace seller.
(2) If the
				marketplace facilitator does not refund the amount paid and instead requires or
				permits the marketplace seller to do so, the marketplace seller shall refund
				the full price paid by the customer, including all tax collected by the
				marketplace facilitator. The marketplace seller shall seek reimbursement of
				Iowa sales tax and applicable local option sales tax from the marketplace
				facilitator. The marketplace facilitator shall reimburse the returned Iowa
				sales tax and applicable local option sales tax to the marketplace seller once
				the marketplace seller has adequately demonstrated that the marketplace seller
				returned the tax in conjunction with a return made directly to the marketplace
				seller. The marketplace facilitator may claim a credit for the return of Iowa
				sales tax and local option sales tax on its Iowa sales tax return.
(3) Nothing in this rule requires a
				marketplace seller to accept a return as described in this rule. Nothing in
				this rule requires a marketplace facilitator to allow returns to be made
				directly to a marketplace seller.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.13 - Exempt and Nontaxable Sales

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Exempt
				sales.
A retailer required to collect and remit Iowa sales tax and
				applicable local option sales tax in accordance with Iowa Code section
				423.14A and this chapter is
				responsible for correctly applying exemptions for tangible personal property,
				specified digital products, and services. As a member of the streamlined sales
				tax governing board, the department maintains a taxability matrix to describe
				whether various items are taxable or exempt. See rule 701-204.6(423) for an
				explanation of the liability relief provided to retailers that rely on the
				taxability matrix in determining whether to collect tax on an item.
(2)
Nontaxable sales.
A
				retailer, including an Iowa retailer with a physical presence in Iowa, a remote
				seller, or a marketplace facilitator, that makes or facilitates only nontaxable
				sales, such as sale for resale or wholesale transactions, is not required to
				register for a sales tax permit.
(3)
Exemption certificates submitted
				to a marketplace facilitator.
An exemption certificate as described in
				rule 701-288.3 (423) that identifies
				the marketplace facilitator as the seller may be used by the purchaser for
				sales made or facilitated by the marketplace facilitator.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 207 - Remote Sales and Marketplace Sales › Rule 701-207.14 - Other Taxes for Marketplace Sales and Items Not Subject to Sales/use Tax

Current through Register Vol. 47, No. 3, July 24, 2024
A marketplace facilitator is not obligated to collect tax on
				  a product sold through a marketplace it operates that is not subject to Iowa
				  sales and use tax.
EXAMPLE: A marketplace facilitator allows marketplace sellers
				  to list for sale vehicles subject to registration under Iowa Code chapter 321,
				  including the fee for new registration imposed in accordance with Iowa Code
				  section 321.105A. Because the fee for
				  new registration is not imposed under Iowa Code chapter 423, the marketplace
				  facilitator is not obligated to collect the fee for new
				  registration.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 208 - Multilevel Marketer Agreements › Rule 701-208.2 - Other Sources of Tax Collection Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
Notwithstanding any provision in this chapter or any
				  multilevel marketer agreement and notwithstanding whether a multilevel marketer
				  agreement is entered between a person and the department, multilevel marketers
				  and independent distributors may have an obligation to collect Iowa sales tax
				  and any applicable local option sales tax if they meet the definition of
				  "retailer" under Iowa Code section
				  423.1(47).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 209 - [effective 8/28/2024] Exemption Certificates › Rule 701-209.1 - Exemption Certificates

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
General provisions.
A valid exemption certificate, whether
				furnished by the department or a seller, must be fully completed, dated, and
				signed if a paper certificate is used.
a. A
				fully completed exemption certificate must include the following information:
(1) Name of both the purchaser and
				seller.
(2) The purchaser's address
				and type of business (e.g., retailer, manufacturer).
(3) Reason for tax-exempt purchase (e.g.,
				resale, processing).
(4) When
				required, purchaser's identification number (e.g., Iowa-issued sales and use
				tax permit, another state's issued sales tax identification number, and Federal
				Employer Identification Number).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 209 - [effective 8/28/2024] Exemption Certificates › Rule 701-209.2 - Fuel Exemption Certificates

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Use of fuel exemption
				certificates.
The use and acceptance of fuel exemption certificates
				must comply with Iowa Code section
				423.45(5). For
				purposes of this subrule, terms mean the same as defined in Iowa Code section
				423.45(5).
(2)
Necessary information.
A
				fuel exemption certificate, as defined in Iowa Code section
				423.45(5), must
				be dated and contain the following information, including but not limited to:
a. The seller's name and address;
b. The purchaser's name and
				address;
c. The type of fuel
				purchased, such as electricity or propane;
d. Description of the purchaser's business,
				such as farmer or manufacturer;
e.
				A general description of the type of processing in which the fuel is consumer,
				such as grain drying, raising livestock, generating electricity, or the
				manufacture of tangible personal property;
f. Claimed exemption percentage.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 209 - [effective 8/28/2024] Exemption Certificates › Rule 701-209.3 - Special Certificates of Beer and Wine Wholesalers

Current through Register Vol. 47, No. 3, July 24, 2024
Beer or wine purchased from a wholesaler holding a Class A or
				  F permit has been purchased for resale if the purchaser provides the wholesaler
				  with a retail beer or wine permit or liquor license number. A wholesaler's
				  record of account with an individual retailer is a complete and correct
				  exemption certificate for the purposes of beer or wine sales and provides all
				  the protection that the usual exemption certificate, as described in rule
				  701-209.1(423), provides if the record of account contains the retailer's beer
				  or wine permit or liquor license number and all other information concerning
				  the account is taken in good faith by the wholesaler. For the purposes of this
				  rule, the words "beer," "permit," "retailer," "wholesaler," and "wine" mean the
				  same as defined in Iowa Code section
				  123.3.
This rule is intended to implement Iowa Code section
				  423.45.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 210 - Purchases by Businesses › Rule 701-210.1 - Wholesalers and Jobbers Selling at Retail

Current through Register Vol. 47, No. 3, July 24, 2024
Sales made by a wholesaler or jobber to a purchaser for use
				  or consumption by the purchaser or in the purchaser's business and not for
				  resale are considered retail sales and subject to tax, even if sales are made
				  at wholesale prices or in wholesale quantities.
This rule is intended to implement Iowa Code section
				  423.2(1).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 210 - Purchases by Businesses › Rule 701-210.2 - Materials and Supplies Sold to Retail Stores

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of materials and supplies sold to retail
				  stores for their use and not for resale shall be subject to tax. The retail
				  store is the final buyer and ultimate consumer of such items as fuel, cash
				  registers, adding machines, typewriters, stationery, display fixtures and
				  numerous other commodities that are not sold by the store to its
				  customers.
This rule is intended to implement Iowa Code section
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 210 - Purchases by Businesses › Rule 701-210.3 - Tangible Personal Property and Specified Digital Products Purchased for Resale but Incidentally Consumed by the Purchaser

Current through Register Vol. 47, No. 3, July 24, 2024
A retailer engaged in the business of selling tangible
				  personal property or specified digital products who takes merchandise from
				  stock for personal use, consumption, or gifts shall report these items as
				  "goods consumed" on the sales and use tax return and remit sales tax and any
				  applicable local option sales tax on the purchase cost of the items. This rule
				  does not authorize purchase for resale of items intended to be used by the
				  retailer.
This rule is intended to implement Iowa Code section
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 210 - Purchases by Businesses › Rule 701-210.4 - Property Furnished Without Charge by Employers to Employees

Current through Register Vol. 47, No. 3, July 24, 2024
When an employer furnishes tangible personal property,
				  including meals, or specified digital products to employees without charge or
				  uses merchandise for gifts or consumption, the cost to the employer of the
				  tangible personal property or specified digital products shall be subject to
				  sales tax and any applicable local option sales tax and reported on the
				  employer's return as "goods consumed" if the employer has not previously paid
				  tax to a retailer. However, the food purchased by the employer for meals
				  prepared for employees is not subject to tax.
This rule is intended to implement Iowa Code section
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 210 - Purchases by Businesses › Rule 701-210.5 - Owners or Operators of Buildings

Current through Register Vol. 47, No. 3, July 24, 2024
Owners or operators of buildings who purchase items to be
				  used by them in maintaining the building are the users or consumers and shall
				  pay sales tax to their suppliers.
(1)
				When owners or operators of buildings remeter and bill their tenants for
				electric current, gas, or any other taxable service consumed by the tenants,
				such owners or operators shall be considered to be purchasing the electric
				current, gas, or other taxable service for resale. These owners or operators
				shall hold permits and shall be liable for the tax upon the sales price of the
				sale of such service. When the building owners or operators purchase all of the
				electric current, gas, or other services for resale and consume a portion in
				the operation of the building, they shall be liable for sales tax on that
				portion consumed, based upon the cost of the electric current or gas purchased
				for resale.
(2) When the management
				of a building sells heat to other buildings or other persons and charges for
				such service as a sale of heat, such transactions are considered sales at
				retail and shall be subject to tax.
(3) When heat is furnished to tenants as a
				service to them, incidental to the renting of the space, there shall be no tax.
				When heat is sold separately and billed to the tenants separately, such service
				shall be taxable.
(4) When a
				building manager makes sales of tangible personal property, specified digital
				products, or taxable services at retail, the manager shall be required to
				procure a permit and collect and remit tax.
This rule is intended to implement Iowa Code section
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 210 - Purchases by Businesses › Rule 701-210.6 - Blacksmith and Machine Shops

Current through Register Vol. 47, No. 3, July 24, 2024
When a blacksmith or machine shop operator fabricates
				  finished tangible personal property from raw materials and sells such property
				  at retail, tax shall apply on the total charge which includes the fabrication
				  labor. Rule 701-26.28 (422) contains
				  information on the taxable service of machine operation.
This rule is intended to implement Iowa Code section
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 210 - Purchases by Businesses › Rule 701-210.6 - Blacksmith and Machine Shops

Current through Register Vol. 47, No. 3, July 24, 2024
When a blacksmith or machine shop operator fabricates
				  finished tangible personal property from raw materials and sells such property
				  at retail, tax shall apply on the total charge, which includes the fabrication
				  labor. Rule 701-211.28 (423) contains
				  information on the taxable service of machine operation.
This rule is intended to implement Iowa Code section
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 210 - Purchases by Businesses › Rule 701-210.7 - Truckers Engaged in Retail Business

Current through Register Vol. 47, No. 3, July 24, 2024
Truckers or haulers engaged in the sale of tangible personal
				  property to ultimate users or consumers shall be deemed as making taxable
				  sales.
This rule is intended to implement Iowa Code section
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 210 - Purchases by Businesses › Rule 701-210.8 - Out-of-state Truckers Selling at Retail in Iowa

Current through Register Vol. 47, No. 3, July 24, 2024
Truckers or persons engaged in the sale of tangible personal
				  property at retail in Iowa based outside of Iowa by means of hauling the
				  tangible personal property into the state shall collect and remit Iowa sales
				  tax. To ensure the remission of tax on Iowa sales, the department has the
				  statutory authority to require a bond deposit from sellers classified in this
				  rule. This right shall be exercised when necessary.
This rule is intended to implement Iowa Code section
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 210 - Purchases by Businesses › Rule 701-210.8 - Out-of-state Truckers Selling at Retail in Iowa

Current through Register Vol. 47, No. 3, July 24, 2024
Truckers or persons who are based outside of Iowa and are
				  engaged in the sale of tangible personal property at retail in Iowa by means of
				  hauling the tangible personal property into the state shall collect and remit
				  Iowa sales tax. To ensure the remission of tax on Iowa sales, the department
				  has the statutory authority to require a bond deposit from sellers classified
				  in this rule. This right shall be exercised when necessary.
This rule is intended to implement Iowa Code section
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 210 - Purchases by Businesses › Rule 701-210.9 - Iowa Dental Laboratories

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Sales by dental
				laboratories.
Iowa dental laboratories are engaged in selling tangible
				personal property to Iowa dentists. Such laboratories shall hold a retail sales
				tax permit and collect and report all tax due from dentists in all transactions
				involving taxable retail sales.
(2)
Purchases not subject to tax.
Iowa dental laboratories shall
				not be subject to tax on those purchases of tangible personal property that
				form a component or integral part of new work or repair work being furnished to
				Iowa dentists or other dentists or would be exempt if purchased directly by the
				dentist's patient.
(3)
Purchases subject to tax.
Iowa dental laboratories are the
				final user or consumer of all tangible personal property, including tools,
				office supplies, equipment, and any other tangible personal property not
				otherwise exempt. Sales tax shall be remitted to its Iowa supplier when
				purchasing in this state, and use tax shall be remitted directly to the
				department when such items are purchased from out-of-state suppliers, unless
				the out-of-state supplier is registered with the department and collects sales
				or use tax for the state.
This rule is intended to implement Iowa Code sections
				  423.2 and
				  423.33.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 210 - Purchases by Businesses › Rule 701-210.9 - Iowa Dental Laboratories

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Sales by dental laboratories.
Iowa dental laboratories are
				engaged in selling tangible personal property to Iowa dentists. Such
				laboratories shall hold a retail sales tax permit and collect and report all
				tax due from dentists in all transactions involving taxable retail
				sales.
(2)
Purchases not
				subject to tax.
Iowa dental laboratories shall not be subject to tax
				on those purchases of tangible personal property that form a component or
				integral part of new work or repair work being furnished to Iowa dentists or
				other dentists or that would be exempt if purchased directly by the dentist's
				patient.
(3)
Purchases
				subject to tax.
Iowa dental laboratories are the final user or
				consumer of all tangible personal property, including tools, office supplies,
				equipment, and any other tangible personal property not otherwise exempt. Sales
				tax shall be remitted to its Iowa supplier when purchasing in this state, and
				use tax shall be remitted directly to the department when such items are
				purchased from out-ofstate suppliers, unless the out-of-state supplier is
				registered with the department and collects sales or use tax for the state.
This rule is intended to implement Iowa Code sections
				  423.2 and
				  423.33.