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.
