Permits

• The sponsor runs the special event.
• The vendor sells products.
• An exhibitor shows or demonstrates an item, perhaps to obtain leads on other sales.

For more information, see Special Events – Sales/Use Tax Permits

Yes, if you had no sales for your filing period, you must still file your return showing $0 sales.

Sponsors need to be aware that charges to the public for admission to the event are taxable. Entry fees at a place of amusement, fair, or athletic event are also taxable, even if the fee is used for prizes. However, entry fees are not taxable when admission is charged.

Yes. Form 70-015 must be completed annually. If you are a retailer and a wholesaler you must keep your wholesale stock separate from your retail stock.

No. Cigarette and tobacco sales must be in person to insure the customer is 21 or older.

Note: Iowa Governor Kim Reynolds signed a bill into law on June 29, 2020 that raised the minimum age for a person to purchase, use, or sell tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes in Iowa from 18 to 21 years old.

Only if you become an Iowa Tobacco Distributor and file monthly returns paying the Iowa tax due.

No. Only approved brands can be sold in Iowa. For a listing of the approved products, see Current Reports.

Cigarettes or tobacco products can be sold from a vending machine if no one younger than 21 is present or permitted within the location at any time. If anyone under 21 can be present, the permit type must be changed to over-the-counter sales. In addition, no permit can be issued if other nontobacco products (other than matches) are sold from the same vending machine. The retailer will also need a Cigarette Vendors Permit. This permit is issued from the Iowa Department of Revenue and form 70-015 must be completed.

Note: Iowa Governor Kim Reynolds signed a bill into law on June 29, 2020 that raised the minimum age for a person to purchase, use, or sell tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes in Iowa from 18 to 21 years old.

Yes, as long as you charge the full minimum price and charge the sales tax. The sales tax exemption does not apply for cigarettes. If they want to buy cigarettes without the sales tax, they need to buy them from an Iowa Distributor or Wholesaler.

As of July 1, 2016, the Department no longer issues temporary tax permits. Vendors who used temporary permits in the past should apply for a permanent Iowa tax permit. To apply for a permanent permit, Complete and Business Permit Registration process on our website. A permanent tax permit allows you to conduct taxable sales or perform taxable services in Iowa at any time during the year. When you attend a temporary event, such as a craft show, you only need to provide the event sponsor with your name and address, along with your permanent tax permit number.

No. The cigarette and tobacco tax is already added to your cost of the product. However sales tax must be added to the sales price.

Tax must still be collected when used items are sold at events, even though tax may have been paid when you originally purchased them for your own use.

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Complete the Iowa Business Tax Change Request (92-033)

Some qualified purchasers, users, and consumers of tangible personal property or taxable services may remit the tax directly to the Department rather than to their suppliers. Learn more about Direct Pay Permits.

A 4% mark up for the Iowa Distributor and an 8% mark up for the Iowa Retailer is already figured into the minimum price formula and shown on the minimum price listing. You may sell cigarettes at a price that is higher than the minimum.

Complete form 70-014 and take the completed application to your city clerk, if the selling location is within city limits, or the county auditor, if the selling location is outside city limits. All items on the form must be completed.

Cigarettes will have an Iowa Cigarette Tax Stamp on the bottom of the pack. Your tobacco invoice should indicate the Iowa tobacco tax is included.

The Department no longer reinstates business tax permits. A business must apply for a new permit.

The price depends on the location of the business and the month issued.

Iowa's state sales/use tax rate is 6%. Many cities and counties also have a 1% local option tax.

You have a few options for locating your tax permit number:

1. If you have access to GovConnectIowa, you can locate your permit number under the Summary tab.
2. Sales tax permits are not confidential, if you're able to provide your information we can share this over the phone or by email. Other tax permits that are confidential would require an official or third party on file with the Department to call us.
3. You can submit an Iowa Business Tax Change Request (92-033) from our forms library. Include as much information as possible for registration to identify what permit you're asking for.

You may ask for a refund on the form IA 843 Claim for Refund (22-009).

An adjustment can be made on the tax return by entering the amount paid for the materials (not including the amount of tax) when originally purchased as an “other” exemption on line 4 of the return.

Use the resale exemption for future purchases. This exemption can be claimed by providing an Iowa Sales Tax Exemption Certificate (31-014) to your supplier.

Remember this applies only to items purchased for resale or to be incorporated into another product for resale. A credit or refund is not allowed for tax paid on items that were purchased for your own use, even though they may be sold at some time in the future. Tax must still be collected when goods are sold at events even though tax may have been paid on them when they were originally purchased.

Sponsors of flea markets, craft shows, antique shows, and other temporary events must verify that the exhibitors are licensed to collect tax. Sponsors must obtain an Iowa tax permit number or a good faith statement from each vendor. Sponsors may be responsible for tax that is not collected by the vendors, if the vendor information is not obtained.

Register online or complete the Iowa Business Tax Permit Registration, 78-005. Taxpayers only need to apply once for a permit and will remain active until the permit is canceled.

Review the information on Special Events – Sales/Use Tax Permits.

Yes and you must become an Iowa Tobacco Distributor and file monthly returns paying the Iowa tax due, if you are purchasing Shisha Tobacco without Iowa Tax. You must also register and remit Iowa Sales Tax.

Yes. If the location is in a different jurisdiction, the old permit is surrendered and a new application and fee must be submitted to the new jurisdiction. If the new location is within the same jurisdiction, the permit is exchanged for a new permit at no charge.

Yes. See Iowa Code 453A.13 (4) for information.

No.

Yes.

Some companies collect the tax from their sales representatives and remit it to the state on their behalf. Your company will be able to provide you with the tax permit number used to remit tax to Iowa. Please provide that number to us.

Sales made by entities or organizations engaged in educational, religious, or charitable activities are exempt if they meet the following requirements:

• The profits from the sale must be used by or donated to one of the following:
  • An entity that is exempt from federal income tax under Internal Revenue Code section 501(c)(3);
  • A government entity; or
  • A private nonprofit educational institution
• The profits must be expended on educational, religious, or charitable activities.
• An exemption from tax is allowed to the extent net proceeds are expended for qualifying educational, religious, or charitable purposes.

NOTE: Most nonprofit organizations are not exempt from tax on their purchases.

For additional information, please see Iowa Tax Issues for Nonprofit Entities.

Tax Included in the Price
If tax is collected as part of or included in the selling price of the item or service, the tax needs to be backed out to arrive at the true gross receipts before the return is completed. This is allowed if the retailer makes known to the purchaser that the tax is included in the price which is charged. That can be done by posting a sign or by a notation on the receipt indicating tax is included in the price.

For example: A vendor includes the 6% tax in the price of all goods sold; for purposes of this example, assume local option tax does not apply. The taxable gross receipts are $250. Divide $250 by 1.06. The result - $235.85 - is the amount to be written on line 1 of the return.

If only the state tax of 6% applies, divide the gross receipts by 1.06 as shown in the above example. If a 1% local option tax also applies, divide by 1.07.

Exemptions
Sales made that are not subject to tax are reported as exemptions. Many taxpayers confuse exemptions with the types of deductions for expenses they are able to take on their income tax returns. Expenses of the business are reported on the IRS Schedule C, Profit or Loss from a Business, for income tax purposes, but are not included as exemptions on the sales or use tax return. For example, table or registration fees cannot be shown as an exemption.

There are escalating penalties starting at $200 for operating without a permit.

Any person selling cigarettes, tobacco products, vapor products, or alternative nicotine products must have a valid retail permit. Whether selling one type of product or a combination of products, only one permit is required.

Your filing frequency will be automatically determined based on the information you provide during registration. Learn more about Filing Frequencies and Return Due Dates.

• Services: Iowa Sales and Use Tax: Taxable Services
• Iowa Sales and Use Tax Guide publication.

The taxation of food can be a difficult subject to understand. See Iowa Sales Tax on Food for details.

The permit expires each year on June 30.

You can view and export all Iowa Retail Sales and Retail Use Business Registration permits online at data.iowa.gov.