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Iowa
Sales Tax Resale Certificate Number 3 Reasons for
Obtaining a State Sales Tax Certificate are listed below.
-
Iowa law requires
virtually every type of business to obtain a
Iowa Sales Tax
Certificate Number. If you sell goods on eBay or the internet
and ship them to someone in the state you reside, then you must
collect sales tax from the buyer and pay the collected tax to
your state on a monthly or quarterly basis. If you sell less
than $4 million in annual sales, you do not have to collect or
pay sales tax on out-of-state sales.
-
Iowa Sales Tax Resale Certificate
Example: If you live in
Iowa and you sell
or ship something to someone else in
Iowa, then you
must collect and pay sales tax to the
State of
Iowa. But, if you sell the same item to someone
outside the State of
Iowa, you need not charge sales tax,
but must report the exempt tax sale to the State of Iowa.
- You are able to purchase items without
paying Iowa sales tax. When you buy an item that you plan to resell,
you can purchase it without paying
Iowa sales tax.
Items must be for resale or qualified business use.
-
Iowa Sales Tax Resale Certificate
Example: If you go to a wholesaler and buy a
computer you plan to sell [like eBay], you may purchase the item
without paying state sales tax.
- Wholesale companies in
Iowa require a sales tax
resale certificate. Virtually all legitimate wholesale companies
will ask for a copy of your resale certificate before they will
sell to you at wholesale prices. Also, wholesale companies, require a
Iowa state sales tax certificate number to
open a commercial account.
-
Iowa Sales Tax Resale Certificate
Example: Wholesale trade shows and
merchandise marts require a copy before letting you
participate.
Obtain a State Sales
Tax Resale
Certificate
Number for your business for $125.00.
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