Iowa Code r. 701-207.13 - Exempt and nontaxable sales
(1)
Exempt sales. A retailer required to collect and remit Iowa
sales tax and applicable local option sales tax in accordance with Iowa Code
section 423.14A and this chapter is
responsible for correctly applying exemptions for tangible personal property,
specified digital products, and services. As a member of the streamlined sales
tax governing board, the department maintains a taxability matrix to describe
whether various items are taxable or exempt. See rule
701-204.6 (423) for an
explanation of the liability relief provided to retailers that rely on the
taxability matrix in determining whether to collect tax on an item.
(2)
Nontaxable sales. A
retailer, including an Iowa retailer with a physical presence in Iowa, a remote
seller, or a marketplace facilitator, that makes or facilitates only nontaxable
sales, such as sale for resale or wholesale transactions, is not required to
register for a sales tax permit.
(3)
Exemption certificates submitted
to a marketplace facilitator. An exemption certificate as described in
rule 701-288.3 (423) that identifies
the marketplace facilitator as the seller may be used by the purchaser for
sales made or facilitated by the marketplace facilitator.
Notes
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