What is an Iowa Sales Tax Permit?
A retail sales tax permit is not a license to buy tax free tangible items or provide tax free services. It allows seller to charge sales tax on tangible taxable items or services on behalf of the Iowa Department of Revenue. Sales tax should be charged to Iowa buyers.
What is an Iowa Use Tax?
Generally, Iowa use tax is paid by the purchaser directly to the Iowa department of revenue, if it was not collected. Buyers bought and brought taxable goods to consume in the state of Iowa from out of vendors are required to pay use tax.
What is an Iowa Consumer Tax?
Out of state vendors will report consumer tax report to the Iowa department of revenue, if they they collected sales tax from Iowa buyers. Taxable items bought through internet or catalog are subject to collect sales tax.
How to apply for Iowa Sales Tax Permit?
- You can register Iowa sales tax permit electronically at Iowa department of revenue website.
- Iowa department of revenue generally takes seven to day working days to process sales tax application.
- Iowa department of revenue does not charge filing fee to apply for a sales tax license, but service companies may charge to make the process simple.
- Each location should have a separate permit, but If a business has two or more sales tax permits, it may request to file one consolidated return on the Business Tax Registration form.
- The Iowa Department of revenue does not issue temporary tax permits.
- The Iowa Department of revenue may deny your sales tax application, if you currently substantially delinquent in paying any tax or had a previous delinquent liability with the Department.
Do you have to renew Iowa Sales Tax Permit?
- Iowa department of revenue issues a seller's permit permanently and is not applicable to renew.
- Once it is issued, a sales tax permit is effective until it is canceled by the retailer or revoked by the Iowa Department of revenue.
Iowa Sales Tax Permit for temporary events
You must obtain Iowa sales tax permit for participating in temporary events such as flea markets, craft shows, antique shows, and other temporary events. You only need to provide the event sponsor with your name and address, along with your permanent tax permit number.
Reinstatement of Iowa Sales Tax Permit
- The Iowa department of revenue may revoke your sales tax permit if you default in paying taxes.
- To restore a revoked sales tax permit or apply for a new permit, you have to wait 90 days before you send a request for restoration.
- Anyone knowingly making sales after a sales tax permit has been revoked/terminated and before it is restored may be found guilty of an aggravated misdemeanor.
Iowa Streamlined Sales Tax Permit
State of Iowa is enumerated in the streamlined sales tax project.
Iowa Sales Tax Returns Filing Frequencies
- You are an annual sales tax filer if you have collected less than $120.00 sales tax in a year, and you will file sales tax reports not later than January 31 following each calendar year.
- You will be a quarterly sales tax filer, if the sales tax liability is more than $120 but less than $6,000 tax per year and due date to file sales tax return is by the last day of the month following each calendar quarter.
- You are a semi-monthly sales tax filer, if you have collected more than $60,000 tax a year, and you must report it electronically. You can check a cap on Iowa department of revenue website to determine deposit dates.
Bond requirements to obtain a sales and use tax permit Iowa
The Iowa department of revenue may request you to deposit bond under the following conditions.
- Due to unfavorable filing and remittance record for prior tax obligations.
- If, held a previous permit and has experienced prior to collection problems.
- The Iowa Department of revenue has knowledge that the applicant may be financially unable to remit the tax by the date due.
