Iowa Admin. Code r. 701-201.1

Current through Register Vol. 47, No. 11, December 11, 2024

Rule 701-201.1 - Permit required

(1)Permit requirement. A person shall not make taxable sales of tangible property, specified digital products, or services until the person has received a permit from the department.

(2)Purchases subject to use tax. A person liable for use tax under Iowa Code section 423.34 is required to file a sales and use tax return with the department, reporting and remitting use tax on all property or taxable service purchased for use in Iowa during the tax period covered by the return, unless the seller from whom the purchase is made is registered with the department and has collected sales or use tax on the purchase.

(3)Sales subject to use tax. A remote seller as defined in rule 701-207.1 (423) making sales into Iowa or sales of tangible personal property, specified digital products, or taxable services without meeting or exceeding the sales threshold as defined in rule 701-207.1 (423) may register for a sales and use tax permit to collect use tax on such sales. The person collecting use tax on these sales shall report these sales as sales subject to use tax on the sales and use tax return. Rule 701-207.6 (423) contains additional information about sales tax collection obligations for out-of-state persons.

(4)Infrequent purchases. A person who does not regularly make purchases subject to use tax but needs to remit tax may use the Iowa non-permit use tax return available via GovConnectIowa or by other means as prescribed by the department. If a person owes less than $1,200 per year in use tax, the person does not need to obtain a permit and may file the Iowa non-permit use tax return.

This rule is intended to implement Iowa Code section 423.36.

Iowa Admin. Code r. 701-201.1

ARC 8150C, IAB 7/24/24, effective 8/28/24