Vendors Sales Tax Information

ATTENTION ALL VENDORS

Please be aware that the Iowa Department of Revenue is enforcing the Iowa tax code for Special Events, which includes flea markets. Dealers MUST have an Iowa Sales Tax Number.

Iowa Code §423.33(3)

code section states that the sponsor “shall obtain from every retailer selling tangible
personal property or taxable services at the event proof that the retailer possesses a valid sales tax permit or secure from the retailer a statement, taken in good faith, that property or services offered for sale are not subject to sales tax. Failure to do so renders a sponsor of the event liable for payment of any sales tax, interest, and penalty due and owing from any retailer selling property or services at the event.

 

This means that ALL vendors selling tangible property must have an Iowa Sales Tax number Unless you are selling exempt items under the Iowa Dept. of Revenue Code such as  those vendors selling ONLY Animals, feed, farm equipment or other exempt items.

It is recommended that every vendor, that does not have an Iowa Sales tax number, apply now for a number. You may do so online by following this link. https://www.idr.iowa.gov/CBA/start.asp this will only take a few minutes of your time.

I understand you may NOT like this however it is the law and we have no choice but to follow the law. This law has been in effect for many years and while it was not enforced in the past by the Department of Revenue it is NOW being enforced and we MUST furnish the State of Iowa with names addresses of every vendor along their sales tax number.

I have been asked many times does this mean I have to charge sales tax? The answer is you do not have to charge it separately to your customer but you must still remit the tax owed. You can either sell your item including the sales tax or you may add it to the price. How you handle this is up to you. If you sell an item for $100 and include the tax you are actually selling the item for $93.46 and $6.54 would be the tax amount. If you sell the item for $100 plus tax your customer would owe you $107.00.