(1)
Combined Iowa sales from all sources. The sum of the total
amount of Iowa sales through marketplace and nonmarketplace Iowa sales
determines whether remote sellers meet the sales threshold.
(2)
Remote sellers with Iowa sales
solely through marketplaces. If a remote seller meets the sales
threshold but only makes retail sales in Iowa through marketplaces, the remote
seller's registration and collection obligations depend on whether all of the
marketplace facilitators through which the remote seller makes Iowa sales are
registered to collect Iowa sales tax and applicable local option tax.
a.
Registered marketplace
facilitators. If all the marketplace facilitators used by the remote
seller to make taxable Iowa sales collect Iowa sales tax and applicable local
option sales tax, the remote seller does not have to collect the tax. The
marketplace facilitator will report and pay Iowa sales tax and applicable local
option sales tax on a sales tax return filed by the marketplace facilitator.
Example: Seller X has $200,000 in gross revenue from Iowa
sales. Seller X makes all of its Iowa sales through a marketplace facilitator
that collects Iowa sales tax and applicable local option sales tax on sales.
Seller X does not need to register for an Iowa sales tax permit or file an Iowa
sales tax return. The marketplace facilitator will report the Iowa sales tax
and applicable local option sales tax on the marketplace facilitator's Iowa
sales tax return.
b.
Nonregistered marketplace facilitators. If a marketplace
facilitator is not required to or fails to register and collect tax in Iowa,
remote sellers who exceed the sales threshold must obtain an Iowa sales tax
permit, collect Iowa sales tax and applicable local option sales tax, and file
Iowa sales tax returns for sales made on that marketplace.
Example: Seller X has $200,000 in gross revenue from Iowa
sales. Seller X has $2,000 in gross revenue from sales on Marketplace Y and
$198,000 in gross revenue from sales on Marketplace Z. Marketplace Y meets the
sales threshold and is registered to collect and remit Iowa sales tax and
applicable local option sales tax in Iowa. Marketplace Z, however, has very few
low-cost Iowa sales, meets neither the gross revenue nor volume of sales
threshold, and is therefore not required to and does not collect tax on Iowa
sales. Seller X must collect Iowa sales tax and applicable local option sales
tax on retail sales sourced to Iowa that are made on Marketplace
Z.
(3)
Remote sellers making both marketplace and nonmarketplace
sales. A remote seller that exceeds the sales threshold and makes
nonmarketplace Iowa sales, such as through the remote seller's own website,
must obtain an Iowa sales tax permit. The remote seller must report on its Iowa
sales tax return its gross revenue from all Iowa sales. The remote seller would
be able to deduct the amount of gross sales made through any marketplaces
registered to collect tax in Iowa on the remote seller's sales tax return. A
remote seller making Iowa sales through a marketplace operated by an
unregistered marketplace facilitator must collect and remit Iowa sales tax and
applicable local option sales tax on those sales.
