(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.
