(1)
Commencement of collection
obligation. 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. The
remote seller or
marketplace facilitator must collect
tax through the end of the calendar year in which the
sales threshold was met
or exceeded as well as the entire next calendar year.
EXAMPLE: Company S, a remote seller, did not exceed the sales
threshold in 2018. On September 15, 2019, S exceeds the sales threshold for the
first time. S must register to collect Iowa sales tax and must begin collecting
Iowa sales tax and applicable local option sales tax on November 1, 2019. S
must continue to collect through at least December 31, 2020. S's sales volume
in 2020 and later years will determine whether S must collect Iowa sales tax
and applicable local option sales tax after December 31, 2020.
(2)
Commencement of sales tax
liability. If a remote seller or marketplace facilitator without
physical presence in Iowa exceeds the sales threshold as described in subrule
207.9(1), the remote seller or marketplace facilitator without physical
presence in Iowa is not liable for any Iowa sales tax and applicable local
option sales tax not collected beginning on January 1 of the current year
through the day prior to the date the remote seller or marketplace facilitator
without physical presence in Iowa is obligated to collect the tax as described
in subrule 207.9(1). A purchaser will be liable for any use tax that accrues
prior to the date the remote seller or marketplace facilitator without physical
presence in Iowa is obligated to collect Iowa sales tax and applicable local
option sales tax as described in subrule 207.9(1).
(3)
Permit registration. If
a remote seller or marketplace facilitator without physical presence in Iowa
that makes taxable sales exceeds the sales threshold, the remote seller or
marketplace facilitator without physical presence in Iowa must register for a
sales and use tax permit under 701-Chapter 201 prior to the date the remote
seller or marketplace facilitator without physical presence in Iowa is
obligated to collect Iowa sales tax and applicable local option sales tax as
described in subrule 207.9(1).
