When it comes to sales tax, there are a few things that businesses need to be aware of. For example, in the state of Iowa, there is a $100,000 threshold for nexus. This means that if your business exceeds this amount in sales within the state, you will be required to collect and remit sales tax. However, if you submit a reseller certificate to the business or provider supplying the good or service, you can avoid paying any sales tax. The liability for sales taxes then falls on the shoulders of the reseller.

There are two ways in which a reseller’s certificate can be shared: by submitting an existing certificate to the supplier or by creating a new certificate on third-party platforms such as Avalara or Tax-exempt. It’s important to note that the owners of a valid certificate lie with the supplier–not with the reseller. In order for a certificate to be considered valid, all necessary steps must be taken by both parties involved.

Lastly, it’s worth mentioning that Iowa has a 6% sales tax rate. If you’re selling products or services in this state and need more information about registering for a permit, feel free to reach out!

Iowa – https://govconnect.iowa.gov/tap/_/

Sales tax rate – 6.000%

Information required to register for a sales tax permit in the state of Iowa

1)     Personal identification info (SSN, address, etc.)

2)     Business identification info (EIN, address, etc.)

3)     Business entity type (sole-proprietor, corporation, LLC, etc.)

4)     Date you started sell in Iowa

5)     Types of products or services sold