v v2023.0
Publish Date: July 10, 2023 at 8:09:13 PM
Effective Date: | August 01, 2023 |
Completed by: | Amy Stohlmeyer |
E-mail Address: | amy.stohlmeyer@iowa.gov |
Phone number: | 515-336-9021 |
Date Revised: | July 10, 2023 |
Taxability Treatment | Definition Treatment | Statute/Rule Cite Reference |
✓ Comments | ✓ Date Revised |
Item 8.1.d was adjusted to simply read "No threshold."
Each Tax Administration Practice is in the Library of Tax Administration Practices in the Streamlined Sales and Use Tax Agreement (SSUTA) as amended through November 7, 2023. See Appendix E of the SSUTA for additional explanations and examples related to the Tax Administration Practices".
"Tax Administration Practices" indicates which administrative practices the state follows and provides an explanation of the state's practice if it does not follow a listed practice.
To the extent possible under each state's laws, sellers and CSPs are relieved from tax liability to the member state and its local jurisdictions for having charged and collected the incorrect amount of sales and use tax resulting from the seller or certified service provider relying on erroneous data provided by the member state relative to the tax administration practices.
To the extent possible under each state's laws, sellers and CSPs are also relieved from tax liability to the member state and its local jurisdictions for having charged and collected the incorrect amount of sales and use tax until the first day of the calendar month that is at least 30 days after notice of a change to the state's "Taxability Matrix: Tax Administration Practice" is submitted to the governing board, provided the seller or CSP relied on the prior version of the Taxability Matrix.
As of June 2021 the Taxability Matrix was separated into two documents: Taxability Matrix: Library of Definitions (previously Section 1) and Taxability Matrix: Tax Administration Practices (previously Section 2).
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Iowa Code § 423.1(51); 701 IAC 203.1
Iowa Code § 423.1(51); 701 IAC 203.3(3)
Iowa Code § 423.1(51); 701 IAC 203.1
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Iowa Code §§ 423.6(1) & 423.47; 701 IAC 202.14
Yes
No
Statute/Rule Cite
Comment
Iowa Code §§ 423.6(1) & 423.47; 701 IAC 202.14
Yes
No
Statute/Rule Cite
Comment
Iowa Code § 423.22; 701 IAC 202.14
Yes
No
Statute/Rule Cite
Comment
701 IAC 202.14
701 IAC 202.14
Yes
No
Statute/Rule Cite
Comment
701 IAC 202.14
Yes
No
Statute/Rule Cite
Comment
701 IAC 202.14
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
701 IAC 202.14
Yes
No
Statute/Rule Cite
Comment
701 IAC 202.14
701 IAC 202.14
Yes
No
Statute/Rule Cite
Comment
701 IAC 202.14
701 IAC 202.14
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
701 IAC 202.14
Yes
No
Statute/Rule Cite
Comment
701 IAC 202.14
Yes
No
Statute/Rule Cite
Comment
701 IAC 202.14
Yes
No
Statute/Rule Cite
Comment
If you answer "Yes" to 3.1, you do not need to complete 3.1.a, b, and c below.
If you answer "No" to 3.1, please complete 3.1.a, b, and c below.
If you answer "Yes" to 3.2, you do not need to complete 3.2.a, b, and c below.
If you answer "No" to 3.2, please complete 3.2.a, b, and c below.
If you answer "Yes" to 3.3, you do not need to complete 3.3.a, b, and c below.
If you answer "No" to 3.3, please complete 3.3.a, b, and c below.
Yes
No
Statute/Rule Cite
Comment
Iowa Code § 421.59; 701 IAC 7.6
The department will accept
any document which satisfies the requirements of 701 IAC 7.6.
Yes
No
Statute/Rule Cite
Comment
Iowa Code § 421.59; 701 IAC 7.6
The department will accept
any document which satisfies the requirements of 701 IAC 7.6.
Yes
No
Statute/Rule Cite
Comment
701 IAC 202.11
A customer may obtain a refund directly from the department by filing form IA 843 Claim for Refund, available at https://tax.iowa.gov/form-types/sales-and-use-tax or filing the form online by clicking the "Submit an IA 843 Refund Return" link on govconnect.iowa.gov. Alternatively, the retailer may, but is not required to, refund the tax to the customer and claim a credit.
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
701 IAC 288.8
701 IAC 288.8
701 IAC 288.8
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
701 IAC 202.11
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
A customer may obtain a refund directly from the department by filing form IA 843 Claim for Refund, available at https://tax.iowa.gov/form-types/sales-and-use-tax or filing the form online by clicking the "Submit an IA 843 Refund Return" link on govconnect.iowa.gov. Alternatively, the retailer may, but is not required to, refund the tax to the customer and claim a credit.
Yes
No
Statute/Rule Cite
Comment
701 IAC 3
701 IAC 3
701 IAC 3
Reference Number
Disclosed Practice 7 - Classification of Medical Products in Appendix L Identified as "Not Classified by SSTGB"
Yes
No
Statute/Rule Cite
Comment
Medical Products 7.2
Answer No if the item is not classified under any of the terms listed in Medical Products Disclosed Practice 7.1 or a state-specific defined term (other than tangible personal property).
Answer Yes if the item is classified under one of those terms, provide the appropriate statute/rule city and indicate in the "Comment" column the defined term under which the item is classified.
These tax administration practices identify how each state classifies the products identified as "Not Classified by SSTGB" in Appendix L, but do not indicate the taxability of those products.
SSUTA Defined Term
State Specific Defined Term
Statute/Rule Cite
Comment
(if applicable, indicate defined term under which the item is classified)
Breast pumps (See Reference #s 52500-52512)
"dialysis supplies" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Dressings" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Dressings" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Dressings" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Dressings" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Dressings" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Dressings" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Thermometers" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Tourniquets" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Atomizers" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Physicians instruments" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
See 701 IAC 220.7 for descriptions of different types of needles and syringes.
"Ostomy equipment" is included in the definition of a prosthetic device. 701 IAC 220.8(3)(c)
"Ostomy equipment" is included in the definition of a prosthetic device. 701 IAC 220.8(3)(c)
"Ostomy equipment" is included in the definition of a prosthetic device. 701 IAC 220.8(3)(c)
"Paraffin baths" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Resuscitators" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Sitz bath kit" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Adhesive," "gauze," and "surgical" bandages are included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Spas" are excluded from the definition of "orthotic devices" 701 IAC 220.8(3)(e)
"Tracheal suction catheters" is included in the definition of a prosthetic device. 701 IAC 220.8(c)
"Ice bags" is included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
"Heat pads" and "moist heat pads" are included in the definition of "medical equipment and supplies," but not separately defined. 701 IAC 220.8(3)(g)
Disclosed Practice 8 – Collection and Remittance Requirements Related to Remote Sellers, Marketplace Sellers, and Marketplace Facilitators/Providers from Appendix E of the SSUTA. NOTE: Additional explanatory information and examples can be found in Appendix E of the SSUTA.
Unless otherwise specified, Disclosed Practice 8 only applies to the states’ sales and use tax laws, and not to other taxes or other regulatory registration requirements.
(These tax administration practices address how a member state administers its sales and use tax economic nexus, remote seller, and marketplace facilitator/provider statutes. The United States Supreme Court (SCOTUS) ruled in South Dakota v. Wayfair on June 21, 2018, that states can require sellers to collect and remit sales or use tax on sales delivered to locations within their state even if the seller does not have a physical presence in the state.)
Unless otherwise noted, States should answer every disclosed practice question/statement.
Does Your State Follow this Practice?
Does Your State Follow this Practice? If You Answered No, Describe the Difference Between the Practice as Adopted by the Governing Board and Your state's Treatment. Add Additional Comments if desired.
Reference Number
Disclosed Practice 8.1– Remote sellers
Yes
No
Statute/Rule Cite
Comment
General Definition
For purposes of Disclosed Practice 8.1.a
"Remote Seller" is generally a seller that does not have any physical presence in a state (no property or employees) but who sells products or services for delivery into that state.
A remote seller includes a "marketplace seller" that does not have a physical presence in the state.
(Note: A state may allow a seller to have limited physical presence in the state and still treat the seller as a remote seller as provided in (A) and (B).)
(A)(1) Inventory Controlled by 3rd Party
(A) (1) The State still treats a seller as a "Remote Seller" if the seller’s only physical presence in the state is inventory owned by that seller that is in a third party’s warehouse which the seller does not control (e.g., Marketplace Facilitator/Provider controls the movement of inventory). (Note, the exception in (A)(2) and/or (B) may also apply.)
701 IAC 207.1(2)
(A)(2) Inventory Seller Controls
(A)(2) The State still treats a seller as a “Remote Seller” if the seller’s only physical presence in the state is inventory owned by that seller that is in a third party’s warehouse and the seller controls the movement of the inventory. (Note, the exception in (A)(1) and/or (B) may also apply.)
701 IAC 207.1(2)
(B) Employees
(B) The State still treats a seller as a “Remote Seller” if the seller’s only physical presence in the state is an employee that is not involved in making sales. If for purposes of Disclosed Practice 8.1.(B) the State distinguishes between retail and wholesale sales, the State will indicate it in the Comment column.
(Note, the exception in (A) may also apply.)
701 IAC 207.1(2)
8.1.a.i.
The State’s Remote Seller monetary economic nexus threshold is “$100,000” (i.e., either $100,000 or more” or “more than $100,000”). (Definition of “type of products” subject to the threshold calculation is addressed in 8.1.b.)
If ”Yes”, indicate in the Comment column if the State’s monetary economic nexus threshold is:
If “No”, indicate in the Comment column the dollar amount of the State’s monetary economic nexus threshold and whether it is:
If the state does not have a monetary economic nexus threshold, indicate ”No Threshold”.
Iowa Code section 423.14A(3)(a)
$100,000 or more: "A retailer that has gross revenue from Iowa sales equal to or exceeding one hundred thousand dollars for an immediately preceding calendar year or a current calendar year."
Reference Number
Disclosed Practice 8.1.b. – What Type of Products Does the State Include in its Economic Nexus Threshold Calculation?
Yes
No
Statute/Rule Cite
Comment
Disclosed Practice 8.1.b.i.
The State includes sales of all types of products (e.g., sales of tangible personal property, sales of digital good, sales of services) in its economic nexus threshold calculation.
If no, indicate in the Comment column which types of product sales are included in the state’s economic nexus threshold.
(Note: For purposes of these disclosed practices, the sales of the types of products identified in 8.1.b. are the sales to be considered when computing the state’s economic nexus threshold(s).)
Iowa Code section 423.14A(3)(a)
Reference Number
Disclosed Practice 8.1.c. - How is the State’s Remote Seller Monetary Economic Nexus Threshold Calculated? – Only one answer should be “yes”.
Yes
No
Statute/Rule Cite
Comment
8.1.c.i. - GROSS
The State’s Remote Seller monetary economic nexus threshold is based on GROSS sales, gross revenue or gross receipts from all sales.
Iowa Code section 423.14A(3)(a)
8.1.c.ii. - RETAIL
The State’s Remote Seller monetary economic nexus threshold is based only on RETAIL sales (only excludes sales for resale).
8.1.c.iii. - TAXABLE
The State’s Remote Seller monetary economic nexus threshold is based only on TAXABLE sales (all sales that are taxable ).
8.1.c.iv. - OTHER
The State calculates the monetary economic nexus threshold based on something other than Gross, Retail or Taxable sales. Indicate in the Comment column what your state’s monetary economic nexus threshold is based on.
Reference Number
Disclosed Practice 8.1.d. - What is the State’s Remote Seller Transactional Economic Nexus Threshold?
Yes
No
Statute/Rule Cite
Comment
Best Practice for 8.1.d. - States do not have a transactional economic nexus threshold.
8.1.d.i.
The State’s Remote Seller transactional economic nexus threshold is “200” (i.e., either“200 or more” or “more than 200”) separate transactions. (What constitutes a “transaction” is explained in 8.1.e and 8.1.f)
If “Yes” - Indicate in the comments if transactional threshold is:
If “No” – Indicate in the Comment column the State’s transactional economic nexus threshold and whether it is:
If the State does not have a transactional economic nexus threshold indicate ”No Threshold” in the Comment column.
No threshold.
Reference Number
Disclosed Practice 8.1.e. - Which Transactions Are Used to Determine if a Seller Has Met a State’s Transactional Economic Nexus Threshold?
Yes
No
Statute/Rule Cite
Comment
8.1.e.i
The State’s Remote Seller transactional economic nexus threshold is calculated using the same transactions that are used to calculate the State’s monetary economic nexus threshold (gross, retail or taxable) as indicated in Disclosed Practice 8.1.b.
No transactional threshold.
Reference Number
Disclosed Practice 8.1.f. - For Purposes of Computing the State’s Transactional Economic Nexus Threshold, what is Considered a “Transaction”? Only one answer should be “Yes” for i., ii., or iii.
Yes
No
Statute/Rule Cite
Comment
8.1.f.i.
The State’s Remote Seller transactional economic nexus threshold is based on the number of invoices.
No transactional threshold.
8.1.f.ii.
The State’s Remote Seller transactional economic nexus threshold is based on the number of orders placed, regardless of whether multiple invoices or shipments are used to fulfill each order placed (e.g., if a single order is placed but it is delivered in three (3) separate shipments, it is considered one (1) transaction).
No transactional threshold.
8.1.f.iii.
The State’s Remote Seller transactional economic nexus threshold is based on the quantity of items sold (each item on a single invoice is considered a separate transaction (e.g., a prepackaged box of the same product is one item (box of 12 pencils); however, multiple purchases of the same product are separate items (12 individual pencils)).
No transactional threshold.
8.1.f.iv.
An invoice that includes items to be delivered into multiple states is considered a transaction in this State if any of the items on the invoice are delivered into this State.
No transactional threshold.
Reference Number
Disclosed Practice 8.1.g. – Transaction with Multiple Payments
Yes
No
Statute/Rule Cite
Comment
8.1.g.i.
A transaction that requires multiple payments (e.g., monthly payments) is considered one transaction for purposes of the State’s Remote Seller transactional economic nexus threshold (i.e., each payment is not considered a separate transaction).
No transactional threshold.
Reference Number
Disclosed Practice 8.1.h. – Does a Remote Seller who makes sales through a Marketplace Facilitator/Provider need to include the sales made through the marketplace in determining if it meets a state’s economic nexus threshold?
Yes
No
Statute/Rule Cite
Comment
8.1.h.i.
A Remote Seller shall include its sales made through a Marketplace Facilitator/Provider that is registered in the State when determining if it meets or exceeds the state’s economic nexus threshold.
701 IAC 207.3(3)
8.1.h.ii.
A Remote Seller shall include its sales made through a Marketplace Facilitator/Provider that is not registered in the State when determining if it meets or exceeds the state’s economic nexus threshold.
701 IAC 207.3(3)
Reference Number
Disclosed Practice 8.1.i. - What period of time does the State base its a remote seller economic nexus threshold on? – Only one answer should be yes.
Yes
No
Statute/Rule Cite
Comment
8.1.i.i. - EITHER CURRENT or PREVIOUS YEAR
The State’s economic nexus threshold is based on a Remote Seller exceeding the threshold in either the previous calendar year or current calendar year.
Iowa Code section 423.14A(3)(a)
8.1.i.ii. - ONLY PREVIOUS YEAR
The State’s economic nexus threshold is based on a remote seller exceeding the threshold only in the previous calendar year.
8.1.i.iii. - OTHER
The State’s economic nexus threshold is based on a different period of time. (Provide the basis in the Comment column.)
Reference Number
Disclosed Practice 8.1.j. – When does the State require a remote seller to register and begin collecting and remitting the applicable tax? – Only one answer should be yes.
Yes
No
Statute/Rule Cite
Comment
8.1.j.i.
The State requires a Remote Seller to register, collect and remit the tax on the next transaction after meeting or exceeding the threshold.
8.1.j.ii.
The State requires a Remote Seller to register, collect and remit the tax by no later than the first day of the first calendar month that begins at least X days after meeting or exceeding the threshold.
Indicate in the Comment column the number of days after the threshold is met that the seller is required to register and begin collecting and remitting the tax.
701 IAC 207.6(1)
X = 30: "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."
8.1.j.iii.
Other. If the State’s answer to 8.1.j.i and j.ii is “no” indicate in the Comment column when a Remote Seller must register and begin collecting and remitting the tax.
Reference Number
Disclosed Practice 8.1.k. - When is a remote seller who falls below a state’s economic nexus threshold allowed to stop collecting and remitting the tax?
Yes
No
Statute/Rule Cite
Comment
8.1.k.i.
A Remote Seller that falls below the State’s Remote Seller economic nexus threshold(s) during the measurement period (See 8.1.i.) may cancel its registration or request inactive status any time after the measurement period ends.
If yes, indicate in the Comment column if the remote seller can:
If the answer is no, indicate in the Comment column when a Remote Seller can cancel their registration or request inactive status.
701 IAC 207.7
"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."
Reference Number
Disclosed Practice 8.1.l. – What Type of Permit Does a Remote Seller Apply For? – Only one answer should be yes.
Yes
No
Statute/Rule Cite
Comment
8.1.l.i.
The State requires a Remote Seller to register to collect sales tax.
Iowa Code section 423.14A(2); 701 IAC 207.6(3)
8.1.l.ii.
The State requires a Remotes Seller to register to collect (seller’s) use tax.
8.1.l.iii.
The State requires a Remote Seller to register under a single registration to collect both sales and (seller’s) use tax.
8.1.l.iv.
The State allows a Remote Seller to register to collect either a sales or (seller’s) use tax. If yes, please explain in Comment column any special circumstances.
Disclosed Practice 8.1.m. Can a Remote Seller that is not registered or required to be registered in any State provide an exemption certificate claiming sale for resale to a Seller located in this state and can that Seller accept that exemption certificate? More information on a state’s acceptance of an exemption certificate is available at: Exemptions (streamlinedsalestax.org)
Yes
No
Statute/Rule Cite
Comment
8.1.m.i.
A Remote Seller that is not registered or required to be registered in any State can provide an exemption certificate to a Seller in this State claiming a sale for resale for those items the Remote Seller will resell, and the Seller in this State may accept such exemption certificate.
If yes, indicate in the Comment column what identification number, if any, the Remote Seller is required to put on the certificate?
701 IAC 288.3
Iowa prefers a retailer provide its Iowa sales and use tax permit number, if applicable.
8.1.m.ii.
A Remote Seller that is not registered or not required to be registered in any State purchasing items for resale from a third- party supplier (drop shipper) who will deliver the items to the Remote Seller’s customer located in this State can issue an exemption certificate claiming resale and the third-party supplier (drop shipper) can accept such exemption certificate. See SSUTA Sec. 317.A.8 for Drop Shipment requirements.
If yes, indicate in the Comment column what identification number, if any, the Remote Seller is required to put on the exemption certificate.
701 IAC 288.3, 285.55
General definition of Marketplace Seller
Disclosed Practice 8.2 - Marketplace Sellers[Note: Most States enacted laws related to Marketplace Facilitators/Providers that resulted in a Marketplace Seller definition. A “Marketplace Seller” is generally a seller who sells products or services through a physical or electronic marketplace operated by a Marketplace Facilitator/Provider.]
A Marketplace Seller who does not have a physical presence in the state should see DP 8.1 for additional threshold, registration, filing and remittance requirements.
Reference Number
Disclosed Practice 8.2.a - Does a State require a Marketplace Seller to register in the state when all sales are made through Marketplace Facilitators/Providers that are registered to collect and remit the tax on behalf of the Marketplace Sellers?
Yes
No
Statute/Rule Cite
Comment
8.2.a.i.
The State requires a Marketplace Seller that is a “Remote Seller” that sells exclusively through Marketplace Facilitators/Providers to register with the State.
701 IAC 207.3(2)
The most precise answer to this question for Iowa is that it depends on whether the marketplace facilitator is registered and collecting. The answer indicated to the left assumes the marketplace facilitators used by the marketplace seller are all registered and collecting in Iowa.
8.2.a.ii.
The State requires a Marketplace Seller with a physical presence (i.e., not a Remote Seller) that sells exclusively through Marketplace Facilitators/Providers to still register with the State.
701 IAC 207.2(1)
Disclosed Practice 8.2.b – Does the State require a Marketplace Seller to include its sales (dollars and transactions) made through a Marketplace Facilitator/Provider in determining if it meets or exceeds the State’s economic nexus threshold?
Yes
No
Statute/Rule Cite
Comment
8.2.b.i.
The State requires a Marketplace Seller to include its sales (dollars and transactions) made through a Marketplace Facilitator/Provider in determining if it meets or exceeds the state’s economic nexus threshold. See Disclosed Practice 8.1.b. for which types of transactions must be included.
701 IAC 207.2(2)
Disclosed Practice 8.2.c – Does the State require a Marketplace Seller that is registered and filing in the State to include its marketplace sales in the total sales reported on its tax return and take a deduction as if the sales are exempt?
Yes
No
Statute/Rule Cite
Comment
8.2.c.i.
The State requires a Marketplace Seller registered and filing in the State to include its sales through a Marketplace Facilitator/Provider on its tax returns. (If yes, explain in Comment column on how the deduction is claimed for such sales.)
701 IAC 207.2(2)
Disclosed Practice 8.2.d – Does the State require a Marketplace Seller to maintain exemption documentation only for its direct sales, and not for sales made through a Marketplace Facilitator/Provider?
Yes
No
Statute/Rule Cite
Comment
8.2.d.i.
The State requires a Marketplace Seller to maintain exemption documentation only for its direct sales, and not for sales made through Marketplace Facilitators/Providers.
701 IAC 207.10(3)
Disclosed Practice 8.2.e – Does the State allow a Marketplace Seller to rely upon a customer’s exemption documentation for its direct sales, even where the exemption documentation is maintained by a Marketplace Facilitator/Provider?
Yes
No
Statute/Rule Cite
Comment
8.2.e.i.
The State allows a Marketplace Seller to rely upon a customer’s exemption documentation for its direct sales even though that exemption documentation is maintained by a Marketplace Facilitator/Provider (e.g., Marketplace Seller has access to the Marketplace Facilitator’s/Provider’s exemption documentation).
701 IAC 207.10(3)
Disclosed Practice 8.2.f – Can a Marketplace Seller that is not registered or not required to be registered in any State issue an exemption certificate to a Seller located in this State claiming sale for resale and can that Seller accept that exemption certificate?
Yes
No
Statute/Rule Cite
Comment
8.2.f.i
A Marketplace Seller that is not registered or required to be registered in any State can issue an exemption certificate to a Seller located in this State claiming resale for those items the Marketplace Seller will resell and the Seller in this State may accept such exemption certificate.
If yes, indicate in the Comment column what identification number, if any, the Marketplace Seller is required to put on the certificate.
701 IAC 288.3
See https://www.streamlinedsalestax.org/Shared-Pages/exemptions for more information.
8.2.f.ii.
A Marketplace Seller that is not registered or not required to be registered in this State purchasing items for resale from a third- party supplier (drop shipper) who will deliver the items to the Marketplace Seller’s customer located in this State can issue an exemption certificate claiming resale and the third-party supplier (drop shipper) can accept such exemption certificate. See SSUTA Sec. 317.A.8 for Drop Shipment requirements.
If yes, indicate in the Comment column what identification number, if any, the Marketplace Seller is required to put on the certificate.
701 IAC 288.3, 285.55
See https://www.streamlinedsalestax.org/Shared-Pages/exemptions for more information.
Reference Number
Disclosed Practice 8.2.g - Marketplace Seller Liability and Audits
Yes
No
Statute/Rule Cite
Comment
8.2.g.i.
A Marketplace Seller is liable for the tax on sales made through a Marketplace Facilitator/Provider if the Marketplace Seller provides incorrect or insufficient information. (Explain in Comment column if there are exceptions to this rule.)
Iowa Code section 423.14A(3)(c)(3)
8.2g.ii.
The state has a written policy that explains when and how a Marketplace Seller is liable for tax and may be audited on sales made using Marketplace Facilitators/Providers (if yes, provide a reference to the location of the document in the Comment column).
Reference Number
Disclosed Practice 8.3 - Marketplace Facilitators/Providers
Yes
No
Statute/Rule Cite
Comment
Marketplace Facilitator/Provider laws/regulations
Marketplace Facilitator General Definition***
For purposes of Disclosed Practice 8.3, a Marketplace Facilitator/Provider is generally a person who owns, operates or otherwise controls a physical or electronic marketplace and facilitates Marketplace Seller’s sales that the Marketplace Facilitator/Provider either directly or indirectly through contracts, agreements, or other arrangements with third parties, collects the payment from the purchaser and transmits all or part of the payment to the Marketplace Seller.
Reference Number
NCSL model definition of Marketplace Facilitator?
(https://www.streamlinedsalestax.org/docs/default-source/misc-published/ncsl-salt-model-marketplace-facilitator-legislation-6-2021.pdf?sfvrsn=2024eb8c_4 )
Yes
No
Statute/Rule Cite
Comment
The State has adopted (and/or follows) the NCSL model definition of Marketplace Facilitator?
Reference Number
Disclosed Practice 8.3.a - Exceptions to Marketplace Facilitator/Provider Collection Requirements
Yes
No
Statute/Rule Cite
Comment
8.3.a.i.
The State excludes a person as a Marketplace Facilitator/Provider if that person’s sole activity with respect to the transaction with the Marketplace Seller is to provide payment processing services between the seller and purchaser.
If the answer is no, please explain in the Comment column, including if the State’s law is less restrictive, e.g., the payment processing activity is only the principal activity.
Iowa Code section 423.14A(1)(b)(1)
This person is only satisfying subparagraph division (b) of Iowa Code section 423.14A(1)(b)(1).
8.3.a.ii.
The State excludes from Marketplace Facilitator/Provider a person who only provides a platform for sellers to list items for sale and provides information that allows the buyer to contact the seller.
However, the sales transaction and payment for the transaction occurs off the platform directly between the buyer and the seller.
Iowa Code section 423.14A(1)(b)(1)
This person is only satisfying subparagraph division (a) of Iowa Code section 423.14A(1)(b)(1).
8.3.a.iii.
The State excludes a person from being a Marketplace Facilitator/Provider if the person’s participation is limited to listing items for sale and connecting purchasers to Sellers and the Marketplace Facilitator/Provider does not directly or indirectly enter into a contract, agreement, or other arrangement with an unaffiliated payment processor that is solely responsible for collecting funds from purchasers and disbursing those funds to Sellers.
Iowa Code section 423.14A(1)(b)(1)
A contract, agreement, or other arrangement between a marketplace facilitator and a payment processor is not necessarily required under the applicable Iowa Code section.
8.3.a.iv.
The State excludes from Marketplace Facilitator/Provider a person exclusively providing advertising services.
701 IAC 207.5
8.3.a.v.
The State excludes from Marketplace Facilitator/Provider a person that is registered with the Commodity Futures Trading Commission when using its platform services.
Iowa Code section 423.14A(1)(b)(1)
The Iowa Code does not contemplate registration with the CTFC.
8.3.a.vi.
The State requires a Marketplace Facilitator/Provider to collect tax on all types of taxable products (e.g., tangible personal property, digital goods, or services).
If no, please explain in Comment column which types of taxable product the Marketplace Facilitator/Provider is required to collect on.
Iowa Code section 423.14A(2)
8.3.a.vii
Does the State exclude certain types of transactions from Marketplace Facilitator/Provider sales and use tax collection or remittance requirements (e.g., prepared food/grocery delivery services, hotel or travel intermediaries, car rental services, etc.)? If “yes,” please indicate the exclusions in the Comment column.
701 IAC 207.11
See rule cited to the left. Also note: Iowa Code chapters 423A and 423C, Iowa's hotel and motel excise tax and automobile rental excise tax, respectively, may require a "lodging facilitator," "lodging platform," or "automobile provider" to collect applicable taxes.
Reference Number
Disclosed Practice 8.3.b. - Marketplace Facilitator/Provider Notification Requirements
Yes
No
Statute/Rule Cite
Comment
8.3.b.i.
The State requires a “Marketplace Facilitator/Provider” to provide notification or certification to its Marketplace Sellers that it is registered to collect and to remit the tax. (if yes, describe the method)
8.3.b.ii.
The State requires a “Marketplace Facilitator/Provider” to provide notification or certification to the state tax agency that it is registered to collect and remit the tax? (if yes, describe the method)
8.3.b.iii.
The State requires a “Marketplace Facilitator/Provider” to provide notification or certification to its Marketplace Sellers that it is no longer registered to collect and remit the tax as provided in 8.3.h. (If “yes,” describe the method in the Comment column).
Reference Number
Disclosed Practice 8.3.c – Does your State’s Marketplace Facilitator/Provider law provide for a waiver of the Marketplace Facilitator/Provider registration, collection, and remittance requirement?
Yes
No
Statute/Rule Cite
Comment
8.3.c.i.
The State allows for a waiver of registration, collection, and remittance by the Marketplace Facilitator/Provider if substantially all of its Marketplace Sellers are registered with the State to remit the tax.
8.3.c.ii.
The State allows a Marketplace Seller to continue to collect and remit the tax if mutually agreed to by the Marketplace Facilitator/Provider and if it is approved by the revenue/tax agency.
8.3.c.iii.
The State allows the Marketplace Seller to continue to remit the tax if mutually agreed to by the Marketplace Facilitator/Provider and the revenue/tax agency is notified. Indicate in the Comment column if any threshold requirements must be met before the Marketplace Seller can enter into such agreement .
Reference Number
Disclosed Practice 8.3.d -Marketplace Facilitator/Provider Monetary Economic Nexus Threshold
Yes
No
Statute/Rule Cite
Comment
8.3.d.i.
The State’s Marketplace Facilitator/Provider monetary economic nexus threshold and calculation is the same as Remote Sellers in Disclosed Practices 8.1.
If different, answer “no” and indicate the monetary economic nexus threshold or calculation differences in the Comment column.
Iowa Code section 423.14A(3)(c)(1)
"A marketplace facilitator that makes or facilitates Iowa sales on its own behalf or for one or more marketplace sellers equal to or exceeding one hundred thousand dollars for an immediately preceding calendar year or a current calendar year."
Reference Number
Disclosed Practice 8.3.e – Marketplace Facilitator/Provider Transactional Economic Nexus Threshold
Yes
No
Statute/Rule Cite
Comment
8.3.e.i.
The State’s Marketplace Facilitator/Provider transactional economic nexus threshold and calculation is the same as Remote Sellers in Disclosed Practices 8.1.
If different, please answer “no” and indicate the transactional economic nexus threshold or calculation differences in the Comment column.
No transactional threshold
Reference Number
Disclosed Practice 8.3.f – Marketplace Facilitator/Provider Economic Nexus Measurement Period
Yes
No
Statute/Rule Cite
Comment
8.3.f.i.
The State’s Marketplace Facilitator/Provider Economic Nexus Measurement Period is the same as Remote Sellers in Disclosed Practice 8.1.
If different, please answer “no” and indicate measurement period in the Comment column.
Iowa Code section 423.14A(3)(c)(1)
"A marketplace facilitator that makes or facilitates Iowa sales on its own behalf or for one or more marketplace sellers equal to or exceeding one hundred thousand dollars for an immediately preceding calendar year or a current calendar year."
Reference Number
Disclosed Practice 8.3.g – Exceptions to Physical Presence
Yes
No
Statute/Rule Cite
Comment
8.3.g.i.
A Marketplace Facilitator’s/Provider’s physical presence is based solely on its presence and not on the presence of a Marketplace Seller.
701 IAC 207.2(1)
8.3.g.ii.
A Marketplace Facilitator/Provider who is below the state’s economic nexus threshold(s) is excluded from collecting and remitting the state’s tax if the Marketplace Facilitator/Provider only has employees located in the state that are not engaged in making sales (if applicable, please indicate any exceptions).
701 IAC 207.2(1), Iowa Code section 423.1(48)
Disclosed Practice 8.3.h. – When is a Marketplace Facilitator/Provider that falls below a state’s economic nexus threshold allowed to stop collecting and remitting the applicable tax?
Yes
No
Statute/Rule Cite
Comment
8.3.h.i.
The State allows a Marketplace Facilitator/Provider who falls below its Marketplace Facilitator/Provider economic nexus threshold during the measurement period to cancel its registration or request inactive status in the same manner as a Remote Seller in Disclosed Practice 8.1.
If different, please answer “no” and indicate differences in the Comment column.
701 IAC 207.7
"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."
Reference Number
Disclosed Practice 8.3.i. - What Type of Permit Does a Marketplace Facilitator/Provider Apply For?
Yes
No
Statute/Rule Cite
Comment
8.3.i.i.
The State’s registration requirement for a Marketplace Facilitator/Provider is the same as Remote Sellers in Disclosed Practice 8.1. If different, please answer “no” and indicate type of registration in the Comment column.
Iowa Code section 423.14A(2); 701 IAC 207.6(3)
Reference Number
Disclosed Practice 8.3.j. – What are the Registration and Reporting requirements for a Marketplace Facilitator/Provider?
Yes
No
Statute/Rule Cite
Comment
8.3.j.i.
A Marketplace Facilitator/Provider is only permitted to obtain a single registration and file a single return covering its own sales and those made on behalf of its Marketplace Sellers.
Iowa Code section 423.36
8.3.j.ii.
A Marketplace Facilitator/Provider is permitted to register and file separate returns for its own sales and those made on behalf of Marketplace Sellers.
Iowa Code section 423.36
8.3.j.iii.
Were the answers to 8.3.j.i and 8.3.j.ii both “no”?
If so, explain in the comment column the registration and filing requirements for a Marketplace Facilitator/Provider.
Reference Number
Disclosed Practice 8.3.k. – Voluntary Registration as a Marketplace Facilitator/Provider
Yes
No
Statute/Rule Cite
Comment
8.3.k.i.
The State allows a person that does not meet the State’s definition of Marketplace Facilitator/Provider to voluntarily register to collect and remit the tax on behalf of its third-party sellers.
8.3.k.ii.
Will the State enter into an agreement that provides authority for a person to voluntarily register as a Marketplace Facilitator/Provider to collect and remit the tax on behalf of third- party sellers and have the same obligations, rights and protections as a “Marketplace Facilitator/Provider”?
(Note: If a written agreement is required, provide requirements in the Comment column.)
Reference Number
Disclosed Practice 8.3.l. - Marketplace Facilitator/Provider Treatment as a Seller – A Marketplace Facilitator/Provider is treated as the seller for the following:
Yes
No
Statute/Rule Cite
Comment
8.3.l.i.
Refunds – The State allows Marketplace Facilitator/Provider to request a refund from the state in same manner as a seller/retailer.
Iowa Code section 423.14A(2); 701 IAC 207.1(2), definition of "retailer"
8.3.l.ii.
Vendor discounts - The State applies timely filing/payment discounts/vendor allowances to Marketplace Facilitators/Providers in same manner as a seller/retailer.
Iowa Code section 423.14A(2); 701 IAC 207.1(2), definition of "retailer"; 701 IAC 207.8
8.3.l.iii.
Exemption Documentation – The State allows sales made by Marketplace Facilitator/Provider to be exempt based on the Marketplace Facilitator/Provider having access to exemption documentation that is maintained by either the Marketplace Facilitator/Provider or Marketplace Seller.
701 IAC 207.10(3)
8.3.l.iv.
Coupons – The State allows coupons, whether issued by a Marketplace Facilitator/Provider or a Marketplace Seller to be deemed to be a retailer’s coupon/discount. (If “no,” indicate in Comment column how such coupons are treated.)
701 IAC 207.8
8.3.l.v.
Bad Debts – The State allows a sales/use tax bad debt deduction based on the party that is able to claim the federal tax deduction under IRC 166, regardless of which party remitted the sales tax. (If “no”, indicate in the Comment column such restrictions.)
Iowa Code section 423.14A(2); 701 IAC 207.1(2), definition of "retailer"
Reference Number
Disclosed Practice 8.3.m. - Shifting of Liability to Marketplace Seller
Yes
No
Statute/Rule Cite
Comment
8.3.m.i.
A Marketplace Facilitator/Provider is liable for the tax unless a Marketplace Seller provided incorrect or insufficient information.
Iowa Code section 423.14A(3)(c)(3)
8.3.m.ii.
The State has a written policy on what reasonable steps a Marketplace Facilitator/Provider must take to obtain correct and sufficient information from a Marketplace Seller to shift the liability of the tax to the Marketplace Seller (If “yes,” please reference location of the document in the Comment column).
Reference Number
Disclosed Practice 8.3.n. – Marketplace Facilitator/Provider absolved of tax, penalty and interest.
Yes
No
Statute/Rule Cite
Comment
8.3.n.i.
The State absolves a Marketplace Facilitator/Provider of tax, penalty and interest if it can show that a Marketplace Seller or the purchaser already paid the tax on the transaction.
Iowa Code section 423.33
Reference Number
Disclosed Practice 8.3.o. – Is the Marketplace Facilitator/Provider Required to Collect Non-Sales/Use Taxes and Fees?
Yes
No
Statute/Rule Cite
Comment
8.3.o.i.
The State requires a Marketplace Facilitator/Provider to collect and remit other taxes and fees that are also directly imposed on the consumer at the time of the sale. (If yes, please provide the taxes and fees in the Comment column along with legal authority.)
701 IAC 207.11
8.3.o.ii.
The State requires a Marketplace Facilitator/Provider to collect and remit other taxes and fees that are not directly imposed on the consumer at the time of the sale. (If yes, please provide taxes and fees in the Comment column along with legal authority.)
701 IAC 207.11
Reference Number
Disclosed Practice 8.3.p. – Class Action Lawsuits
Yes
No
Statute/Rule Cite
Comment
8.3.p.i.
Did the State enact class action protections for Marketplace Facilitators/Providers separate from what the State is required to provide for all sellers based on Section 325 of the SSUTA/Agreement?
If yes, provide the statutory reference in the Comment column.
(Note: Indicate in the Comment column if this also applies to Marketplace Sellers.)
Iowa Code section 421.71
The Iowa Code section cited to the left is not specific to marketplace facilitators but would apply to them.
Disclosed Practice 9 – Administration of Exemptions
NOTE: Additional explanatory information and examples can be found in Appendix E of the SSUTA.
These tax administration practices address how a member state administers exemptions that appear on the SST exemption certificate when the transaction is sourced to the state. Not all states allow all of the exemptions listed on the SST exemption certificate. In addition, some exemptions may have limitations or be limited in some manner.
The phrase “exemption certificate” includes both paper exemption certificates and the capture of the required data elements.
Sellers are not required to validate a purchaser’s ID number or to know whether a purchaser is required to be registered in a state.
Purchasers may be held liable for the tax, interest, and penalties on a transaction if the purchaser improperly issues an exemption certificate to the seller.
Unless otherwise noted, States should respond to every disclosed practice question/statement. A state is not required to answer a question if that question is the subject of ongoing litigation in the state. States should provide links to statutes, regulations or published guidance addressing any limitations to an exemption.
Does Your State Follow this Practice?
If You Answered No, Describe the Difference Between the Practice as Adopted by the Governing Board and Your State's Treatment. Add Additional Comments if Desired.
Reference Number
Disclosed Practice 9.1 – General – Seller Requirements - SSUTA Sec. 317 provides the following specific practices that apply to the administration of exemptions and exemption certificates.
Yes
No
Statute/Rule Cite
Comment
9.1.A.
Member states are asked to affirm that they comply with the following requirements. Does your state comply with all the following requirements? If no, indicate in the Comment column.
9.1.A.i.
The seller is not required to verify the purchaser’s ID number or determine the purchaser's registration requirements. (SSUTA Rule 317.A.6.g)
9.1.A.ii.
The seller is required to maintain proper records of exempt transactions and provide those records to the state when requested in the form in which it is maintained. Those records may be provided in paper or electronic format. (SSUTA Sec. 317.A.6)
9.1.A.iii.
A seller may not accept an exemption certificate for an entity‐based exemption on a sale if the subject of the transaction is actually received by the purchaser at a location operated by the seller within the designated state if the state does not allow such an entity‐based exemption. (SSUTA Sec. 317.B)
9.1.A.iv.
A drop shipper may accept an ID number to claim the resale exemption as provided below in the Purchaser’s Requirements. The ID number may include an ID number issued by another state. This may result in the same ID number being listed for more than one state. (SSUTA § 317.A.8)
9.1.B.
Your state requires a seller to renew blanket exemption certificates if more than 12 months elapses between transactions.
If no, indicate in the Comment column the period the certificate remains valid.
Certificates are valid for up to 3 years.
9.1.C.
A seller is required to obtain the exemption certificate at the time of sale or within 90 days of the sale to receive liability relief provided in Section 317.C. of the SSUTA. (SSUTA Sec. 317.C)
If the period allowed is longer than within 90 days of the sale, indicate in the Comment column the acceptable period of time to obtain an exemption certificate.
Disclosed Practice 9.2 – Purchaser Requirements
Reference Number
Disclosed Practice 9.2.A. – Sales for Resale ID number Requirements, including drop shipments (Sellers – see Seller Requirements in 9.1)
Yes
No
Statute/Rule
Comment
9.2.A.1.i.
Your state requires a purchaser that is required to be registered to collect sales and use tax in your state to include your state’s state-issued sales tax or resale number on an exemption certificate it provides to its seller to claim an exemption from sales/use tax when purchasing for resale.
701 IAC 288.3(2)
See instructions on Form 31-014, Iowa Sales Tax Exemption Certificate.
9.2.A.1.ii.
Indicate below if your state accepts the following ID numbers for a purchaser that is not required to be registered to collect sales and use tax in your state on an exemption certificate it provides to its seller to claim an exemption from sales/use tax when purchasing for resale.
Note: If accepted but not required, note in the Comment column.
9.2.A.1.ii.a.
A business registration number issued by your state, other than a sales tax or resale number.
Accepted but not required.
9.2.A.1.ii.b.
If the purchaser does not have a business registration number issued by your state, then a state-issued sales tax or resale number from any state.
Accepted but not required.
9.2.A.1.ii.c.
If the purchaser does not have a business registration number issued by any state, then a U.S. Federal Employer ID number (FEIN).
Accepted but not required.
9.2.A.1.ii.d.
If the purchaser does not have a state issued sales tax or resale number from any state, a business registration number issued by any state, other than a sales tax or resale number.
Accepted but not required.
9.2.A.1.ii.e.
If the purchaser is not required to be registered and does not have the ID number in a through d above, then a state issued driver’s license number.
Accepted but not required.
9.2.A.1.ii.f.
If your state accepts any other ID number, indicate in the Comment column the type of number it accepts and when it can be used.
9.2.A.1.ii.g.
If a foreign purchaser does not have any of the ID numbers identified above, does your state accept the tax ID number issued by the foreign country (e.g., VAT) on purchases for resale?
9.2.A.1.ii.h.
Does your state require an ID number when claiming an exemption for resale if the purchaser does not have any ID number listed in 9.2.A.1.ii.a. through 9.2.A.1.ii.g.?
9.2.B. – Direct Sales to the Federal Government (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with the Federal Government)
Yes
No
Statute/Rule
Comment
9.2.B.1.
Does your state have a statutory exemption, which may be limited, for direct sales to the Federal Government (including transactions with payment by government credit cards that are paid direct by the government)?
Iowa Code section 423.3(31); 701 IAC 285.5
9.2.B.2.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as the Federal Government?
If yes, enter documentation required in the Comment column.
Form 31-014, Iowa Sales Tax Exemption Certificate.
9.2.B.3.
Is the name of the federal agency making the purchase required?
9.2.C. – Direct Sales to Your State Government (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with your State Government)
Yes
No
Statute/Rule
Comment
9.2.C.1.
Does your State have a statutory exemption, which may be limited, for sales to your State or State agencies from your state?
If no, go to 9.2.D.
Iowa Code section 423.3(31); 701 IAC 285.5
9.2.C.2.
Is the State or State agency required to apply for an exemption number from your state?
· Yes (State or State agency contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
Agencies may provide sellers a letter from Iowa Department of Revenue if seller insists on documentation.
9.2.C.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as your State?
If yes, enter documentation required in the Comment column.
Form 31-014, Iowa Sales Tax Exemption Certificate.
9.2.D. – Direct Sales to a Local Government located in your state (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with a Local Government located in your state)
Yes
No
Statute/Rule
Comment
9.2.D.1.
Does your state have a statutory exemption, which may be limited, for sales to a Local Government located in your state?
If no, go to 9.2.E.
Iowa Code section 423.3(32); 701 IAC 285.5
9.2.D.2.
Is the Local Government required to apply for an exemption number from your state?
· Yes (Local Government contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
9.2.D.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as a Local Government located in your state?
If yes, enter documentation required in the Comment column.
Form 31-014, Iowa Sales Tax Exemption Certificate.
9.2.E. – Direct Sales to State Government located in another state (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with State Government from other states)
Yes
No
Statute/Rule
Comment
9.2.E.1.
Does your state have a statutory exemption, which may be limited, for sales to a State Government from another state?
If no, go to 9.2.F.
9.2.E.2.
Is the State Government from the other state required to apply for an exemption number from your state?
· Yes (Other State contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
9.2.E.3.
Is an exemption certificate or other documentation required when purchaser is claiming exemption as a State from another state?
If yes, enter documentation required in the Comment column.
9.2.F. – Direct Sales to a Local Government located in another state(See 9.2.L and M for information on sales to contractors and other third parties who have contracts with the Local Government from another state)
Yes
No
Statute/Rule
Comment
9.2.F.1.
Does your state have a statutory exemption, which may be limited, for sales to a Local Government located in another state?
If no, go to 9.2.G.
9.2.F.2.
Is the Local Government located in another state required to apply for an exemption number from your state?
· Yes (Local Government contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
9.2.F.3.
Is an exemption certificate or other documentation required when purchaser is claiming exemption as a Local Government located in another state?
If yes, enter documentation required in the Comment column.
9.2.G. – Direct Sales to Tribal Governments or Entities (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with the Tribal Governments)
Yes
No
Statute/Rule
Comment
9.2.G.1.
Does your state’s sales tax agency have published guidance for the treatment of sales to Tribal Governments, Tribal Entities or Tribal members?
If yes, provide links to any published guidance in the Comment column.
Iowa Code section 423.3(31); 701 IAC 285.5
See Iowa Sales and Use Tax Guide (https://tax.iowa.gov/iowa-sales-and-use-tax-guide), "Taxable or Exempt?" button, under "Government Entities"
9.2.H.
9.2.H. – Sales to Foreign Diplomats
Yes
No
Statute/Rule
Comment
9.2.H.1
Does your state’s sales tax agency have published guidance for any exemptions, which may be limited, for sales to a Foreign Diplomat?
9.2.H.2
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as a Foreign Diplomat?
If yes, enter documentation required and the acceptable ID numbers in the Comment column.
9.2.I. – Direct Sales to Charitable Organizations (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with a Charitable Organization)
Yes
No
Statute/Rule
Comment
9.2.I.1.
Does your state have a statutory exemption, which may be limited, for sales to Charitable Organizations?
If no, go to 9.2.J.
Various subsections within Iowa Code section 423.3; 701 IAC 284.1
Only certain charitable or nonprofit organizations specifically enumerated in Iowa law are exempt from sales tax on their purchases as prescribed by law. Iowa Code section 423.3(78) also provides an exemption for a 501(c)(3) organization depending on the use of profits from its sales.
9.2.I.2.
Is the Charitable Organization required to apply for an exemption number from your state?
· Yes (Charitable Organization contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
9.2.I.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as a Charitable Organization?
If yes, enter documentation required in the Comment column.
Form 31-014, Iowa Sales Tax Exemption Certificate.
9.2.I.4.
Is your state’s own state-issued exemption ID number required when claiming exemption as a Charitable Organization?
If no, indicate in the Comment column which ID numbers are acceptable.
N/A
9.2.I.5.
Does your state’s exemption for sales to Charitable Organizations apply to Charitable Organizations located in another state?
If no go to 9.2.J.
9.2.I.6.
Does your state have different requirements for claiming an exemption as a Charitable Organization located in your state than a Charitable Organization located in another state?
If yes, indicate the differences in the Comment column.
9.2.J. – Direct Sales to Religious Organizations (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with a Religious Organization)
Yes
No
Statute/Rule
Comment
9.2.J.1.
Does your state have a statutory exemption, which may be limited, for sales to a Religious Organization?
If no, go to 9.2.K.
Iowa Code section 423.3(78); 701 IAC 284.1
Iowa Code section 423.3(78) also provides an exemption for a 501(c)(3) organization depending on the use of profits from its sales, including "where the entire profits are expended" for "religious" purposes.
9.2.J.2.
Is the Religious Organization required to apply for an exemption number from your state?
· Yes (Religious Organization contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
9.2.J.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as a Religious Organization?
If yes, enter documentation required in the Comment column.
Form 31-014, Iowa Sales Tax Exemption Certificate.
9.2.J.4.
Is your state’s own state-issued exemption ID number required when claiming exemption as a Religious Organization?
If no, the state should indicate the documentation required in the Comment column.
9.2.J.5.
Does your state’s exemption for sales to Religious Organizations apply to Religious Organizations located in another state?
If no go to 9.2.K.
9.2.J.6.
Does your state have different requirements for claiming an exemption as a Religious Organization located in your state than as a Religious Organization located in another state?
If yes, indicate the differences in the Comment column.
9.2.K. – Direct Sales to Educational Organizations (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with an Educational Organization)
Yes
No
Statute/Rule
Comment
9.2.K.1.
Does your state have a statutory exemption, which may be limited, for sales to an Educational Organization?
If no, go to 9.2.L.
Iowa Code sections 423.3(17), 423.3(78); 701 IAC 284.1
Iowa Code section 423.3(17) exempts sales to any Iowa private nonprofit educational institution used for educational purposes.
Iowa Code section 423.3(78) also provides an exemption for a 501(c)(3) organization depending on the use of profits from its sales, including "where the entire profits are expended" for "educational" purposes.
9.2.K.2.
Is the Educational Organization required to apply for an exemption number from your state?
· Yes (Educational Organization contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
9.2.K.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as an Educational Organization?
If yes, enter documentation required in the Comment column.
Form 31-014, Iowa Sales Tax Exemption Certificate.
9.2.K.4.
Is your state’s own state-issued exemption ID number required when claiming exemption as an Educational Organization?
If no, the state should indicate the documentation required in the Comment column.
Form 31-014, Iowa Sales Tax Exemption Certificate.
9.2.K.5.
Does your state’s exemption for sales to Educational Organizations apply to Educational Organizations located in another state?
If no go to 9.2.L.
9.2.K.6.
Does your state have different requirements for claiming an exemption as an Educational Organization located in your state than as an Educational Organization located in another state?
If yes, indicate the differences in the Comment column.
9.2.L. – Sales to Construction Contractors for sales of construction materials incorporated into real property construction activities for the specified organizations. This does not include sales for resale. (see below)
Yes
No
Statute/Rule
Comment
9.2.L.1.
Does your state have a statutory exemption or published guidance, which may be limited, for sales to construction contractors for construction materials incorporated into real property by that contractor for the following entities?
If yes, indicate any documentation required or provide a link to the published guidance in the Comment column.
If no, go to 9.2.M.
Iowa Code section 423.3(80); 701 IAC 219.23
See Iowa Contractors Guide (https://tax.iowa.gov/iowa-contractors-guide).
9.2.L.1.i.
Federal Government
Iowa Code section 423.3(80); 701 IAC 219.23
9.2.L.1.ii.
State Government located in your State
Iowa Code section 423.3(80); 701 IAC 219.23
9.2.L.1.iii.
State Government located in other States
9.2.L.1.iv.
Local Government located in your State
Iowa Code section 423.3(80); 701 IAC 219.23
9.2.L.1.v.
Local Government located in other States
9.2.L.1.vi.
Tribal Governments, Tribal entities or Tribal members
Iowa Code section 423.3(80); 701 IAC 219.23
9.2.L.1.vii.
Charitable Organizations located in your State
Iowa Code section 423.3(80); 701 IAC 219.23
Only certain enumerated charitable organizations qualify as "designated exempt entities."
9.2.L.1.viii.
Charitable Organizations located in other States
9.2.L.1.ix.
Religious Organizations located in your State
9.2.L.1.x.
Religious Organizations located in other States
9.2.L.1.xi.
Educational Organizations located in your State
Iowa Code section 423.3(80); 701 IAC 219.23
9.2.L.1.xii.
Educational Organizations located in other States
9.2.M. – Sales to third parties who are providing services or performing contracts not related to real property.
Statute/Rule
Comment
9.2.M.1.
Does your state have a statutory exemption or published guidance, which may be limited, for sales to third parties who are providing services or performing contracts not related to real property for the following entities?
If yes, indicate any documentation required or provide a link to the published guidance in the Comment column.
If no, go to 9.2.N.
9.2.M.1.i.
Federal Government
9.2.M.1.ii.
State Government located in your State
9.2.M.1.iii.
State Government located in other States
9.2.M.1.iv.
Local Government located in your State
9.2.M.1.v.
Local Government located in other States
9.2.M.1.vi.
Tribal Governments, Tribal entities or Tribal members
9.2.M.1.vii.
Charitable Organizations located in your State
9.2.M.1.viii.
Charitable Organizations located in other States
9.2.M.1.ix.
Religious Organizations located in your State
9.2.M.1.x.
Religious Organizations located in other States
9.2.M.1.xi.
Educational Organizations located in your State
9.2.M.1.xii.
Educational Organizations located in other States
9.2.N. – Sales of Products used in Agricultural Production
Yes
No
Statute/Rule
Comment
9.2.N.1.
Does your state have a statutory exemption, which may be limited, for products used in Agricultural Production?
If yes, provide link to any published guidance issued by your state’s sales tax agency for the treatment of any published guidance sales of products used in Agricultural Production in the Comment column?
If no, go to 9.2.O.
Various subsections in Iowa Code section 423.3; 701 IAC 214
See the Farmers Guide to Iowa Taxes (https://tax.iowa.gov/farmers-guide-iowa-taxes).
9.2.N.2.
Is the purchaser required to apply for an exemption number from your state in order to claim the Agricultural Production exemption?
· Yes (purchaser contacts state to apply for an exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
9.2.N.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption for Agricultural Production?
If yes, enter documentation required in the Comment column.
Form 30-014, Iowa Sales Tax Exemption Certificate.
9.2.N.4.
Does your state’s Agricultural Production Exemption apply to Agricultural Production Entities located in another state?
9.2.N.5.
Is your state’s own state-issued exemption ID number required when claiming exemption for Agricultural Production?
If no, indicate in the Comment column which ID numbers are acceptable.
See Disclosed Practice 9.2.A.1. A purchaser with an Iowa sales and use tax permit must provide its permit number. Other purchasers may provide other numbers but are not required to do so.
9.2.N.6.
Does your state have different requirements for claiming an Agricultural Production exemption by a purchaser located in your state than by a purchaser located in another state?
If yes, indicate the differences in the Comment column.
9.2.O. – Sales of products used in Industrial Production/Manufacturing
Yes
No
Statute/Rule
Comment
9.2.O.1.
Does your state have a statutory exemption, which may be limited, for sales of products used in Industrial Production/Manufacturing?
If no, go to 9.2.P.
Various subsections in Iowa Code section 423.3; 701 IAC 215
See Iowa Sales and Use Tax on Manufacturing and Processing (https://tax.iowa.gov/iowa-sales-and-use-tax-manufacturing-and-processing).
9.2.O.2.
Is the purchaser required to apply for an exemption number from your state?
· Yes (purchaser contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
9.2.O.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption for sales of products used in Industrial Production/Manufacturing?
If yes, enter documentation required in the Comment column.
Form 30-014, Iowa Sales Tax Exemption Certificate.
9.2.O.4.
Does your state’s Industrial Production/ Manufacturing Exemption apply to Industrial Production/Manufacturing Entities located in another state?
9.2.O.5.
Is your state’s own state-issued exemption ID number required when claiming exemption for Industrial Production/Manufacturing?
If no, the state should indicate in the Comment column which ID numbers are acceptable.
See Disclosed Practice 9.2.A.1. A purchaser with an Iowa sales and use tax permit must provide its permit number. Other purchasers may provide other numbers but are not required to do so.
9.2.O.6.
Does your state have different requirements for claiming an Industirial Production/ Manufacturing exemption by a purchaser located in your state than by a purchaser located in another state?
If yes, indicate the differences in the Comment column.
9.2.P. – Sales of Direct Mail
Yes
No
Statute/Rule
Comment
9.2.P.1.
Does your state allow the purchaser to claim direct mail and assume responsibility for directly reporting tax to the appropriate taxing jurisdictions?
If no, go to 9.2.Q.
Purchasers of direct mail may apply for a direct pay permit. See Disclosed Practice 9.2.Q.
9.2.P.2.
Is an exemption certificate or other documentation required when a purchaser claims direct pay responsibility for Direct Mail?
If yes, enter documentation required in the Comment column.
9.2.P.3.
Does your state require an ID number when the purchaser is claiming Direct Mail and assuming the responsibility for directly reporting tax to the appropriate jurisdiction?
If no, go to 9.2.Q.
9.2.P.4.
Is your state’s own state-issued ID number required when the purchaser is claiming Direct Mail and assuming the responsibility for directly reporting tax to the appropriate jurisdiction.
If no, indicate in the Comment column which ID numbers are acceptable.
9.2.Q. – Direct Pay Permit
Yes
No
Statute/Rule
Comment
9.2.Q.1.
Does your state authorize direct pay permits? (SSUTA Sec. 326)
Iowa Code section 423.36(9); 701 IAC 202.6
9.2.Q.2.
Is an exemption certificate, direct pay permit or other documentation required when Direct Pay Permit holder is claiming Direct Pay authority?
If yes, enter documentation required in the Comment column.
Form 30-014, Iowa Sales Tax Exemption Certificate. Direct pay permit holders must enter their permit numbers on the form.
9.2.Q.3.
Does the state require an ID number when the Direct Pay Permit holder is claiming Direct Pay authority?
Direct pay permit holders must enter their permit numbers on the form.
9.2.Q.4.
Is the state’s own state-issued exemption ID number required when the Direct Pay Permit holder is claiming Direct Pay authority?
If no, indicate in the Comment column which ID numbers are acceptable.
Direct pay permit holders must enter their permit numbers on the form.