Iowa Resale Certificate Guide 2026: How to Get Yours

Iowa has a diverse economy rooted in agriculture, advanced manufacturing, finance, and renewable energy. The state imposes a 6% state sales tax, and many local jurisdictions add a 1% local option sales tax, bringing the combined rate to 7% in most areas. Iowa is a member of the Streamlined Sales Tax (SST) agreement, which simplifies compliance for businesses selling across state lines. This guide covers everything about Form 31-014a, Iowa's exemption certificate, for 2026.

Iowa Sales Tax Basics

State and Local Rates

The Iowa state sales tax rate is 6%. Cities and unincorporated areas of counties can impose a local option sales tax (LOST) of up to 1%. The majority of Iowa jurisdictions have adopted the 1% LOST, making the typical combined rate 7%.

The local option tax is approved by local voter referendum and is destination-based, meaning it is determined by the delivery address of the goods.

Use Tax

Iowa imposes a 6% use tax (plus applicable local option tax) on goods purchased from out-of-state sellers when sales tax is not collected. Items purchased for resale are exempt from use tax.

What Is Taxable in Iowa?

• Most tangible personal property is taxable
• Groceries (unprepared food) are exempt from state sales tax
• Prescription drugs are exempt
• Clothing is fully taxable (no clothing exemption)
• Many services are taxable in Iowa, including repair and installation services, cleaning services, and certain professional services
• Digital products and specified digital goods are taxable
• Prepared food is taxable at the full rate

Iowa taxes a broader range of services than most states, so service-based businesses should review the full list of taxable services.

What Form Do You Need?

Iowa uses Form 31-014a, the Iowa Sales/Use/Excise Tax Exemption Certificate. This form is issued by the Iowa Department of Revenue (Iowa DOR).

About Form 31-014a

Form 31-014a is a multi-purpose exemption certificate. It covers resale exemptions, as well as exemptions for processing, agricultural production, and other qualifying uses. When claiming a resale exemption, the buyer selects the appropriate exemption category on the form.

Key fields include:

• Purchaser's name, address, and phone number
• Iowa sales tax permit number
• Type of exemption claimed
• Description of items purchased
• Purchaser's signature and date

Where to Get the Form

Form 31-014a is available as a free download from the Iowa DOR website. The form includes detailed instructions for each exemption category.

Who Needs an Iowa Resale Certificate?

Any business purchasing tangible personal property or taxable services for resale needs an Iowa exemption certificate. This includes:

Retailers buying inventory for sale through physical stores, online platforms, farmers markets, or other channels.

Wholesalers and distributors purchasing goods from manufacturers or importers for redistribution to other businesses.

Online sellers registered in Iowa who purchase inventory for resale through Amazon, eBay, Etsy, Shopify, or other platforms.

Manufacturers purchasing raw materials, components, and packaging materials that become part of a product manufactured for sale.

Restaurants and food businesses buying food ingredients that will be prepared and sold as meals.

Who Does NOT Qualify

• Consumers purchasing for personal use
• Businesses buying supplies, tools, or equipment for internal operations
• Contractors buying materials for installation into real property (Iowa treats contractors as consumers of construction materials in most cases)

How to Apply for an Iowa Resale Certificate

Step 1: Register for an Iowa Sales Tax Permit

You need an Iowa sales tax permit before you can issue a valid Form 31-014a for resale purposes. Registration is handled through the Iowa DOR.

What you need to register:

• Federal EIN or SSN (for sole proprietors)
• Business legal name and DBA
• Business address
• Type of business entity
• Description of products or services sold
• Expected start date
• Estimated taxable sales

Registration is free. Apply online through the Iowa DOR's GovConnectIowa portal.

Processing time: Online applications are typically processed within 5 to 10 business days.

Step 2: Complete Form 31-014a

Download the form and enter your business details. Select the resale exemption category. Enter your Iowa sales tax permit number and describe the products you will purchase for resale.

Step 3: Provide the Certificate to Your Suppliers

Give the completed form to each vendor you want to purchase from tax-free. The vendor retains the certificate on file as proof of the exemption.

Want help with the process? We handle everything from registration to certificate completion.

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Multi-State Considerations

Iowa is a member of the Streamlined Sales Tax (SST) agreement, which is a major advantage for businesses operating in multiple states.

SST Membership

As an SST member, Iowa accepts the Streamlined Sales and Use Tax Agreement Certificate of Exemption. Businesses registered through the SST system can use the SST certificate when purchasing goods in Iowa for resale.

The SST certificate works across all member states, which reduces paperwork significantly for multi-state businesses. Instead of completing a different state-specific form for each state, you can use one SST certificate.

Out-of-State Sellers

Iowa's economic nexus threshold is $100,000 in gross revenue from sales to Iowa buyers in the current or prior calendar year. There is no separate transaction count threshold. Meeting this threshold requires registration, collection, and remittance.

Marketplace Facilitator Rules

Iowa requires marketplace facilitators to collect and remit sales tax on behalf of third-party sellers when the facilitator meets the economic nexus threshold. If you sell exclusively through a marketplace, the marketplace handles your Iowa tax obligations. Direct sales require your own permit.

For more on multi-state compliance, see our multi-state resale certificate guide.

Iowa-Specific Rules You Should Know

Broad Service Taxation

Iowa taxes many services that other states do not. Taxable services include:

• Vehicle repair and maintenance
• Appliance repair
• Furniture and rug cleaning
• Lawn care and landscaping
• Pet grooming
• Photography
• Dry cleaning and laundry
• Storage and warehousing

If you provide or resell any of these services, you need to understand how the resale exemption applies. Generally, if you purchase a taxable service that you then resell as part of your business (for example, a cleaning company subcontracting another cleaning company), the exemption may apply. Consult the Iowa DOR for service-specific guidance.

Manufacturing and Processing Exemptions

Iowa provides exemptions for machinery, equipment, and replacement parts used directly and primarily in manufacturing or processing. This is separate from the resale exemption. Raw materials that become part of the finished product qualify under the resale rules.

Agricultural Exemptions

Iowa has extensive agricultural exemptions covering farm machinery, feed, seed, fertilizer, and other agricultural inputs. These exemptions are claimed using separate sections of Form 31-014a.

Food and Beverage Considerations

Unprepared food is exempt from Iowa's state sales tax, but the local option tax may still apply depending on the jurisdiction. Prepared food, candy, and dietary supplements are taxable at the full combined rate. Restaurants buying food ingredients for resale qualify for the exemption on those ingredients.

Audit Lookback Period

Iowa's standard audit lookback period is 3 years from the due date of the return. Having properly completed exemption certificates on file for every tax-exempt purchase protects you during an audit.

Common Mistakes with Iowa Resale Certificates

Mistake 1: Using the Certificate for Business-Use Items

Buying equipment, office supplies, or personal items with a resale certificate is the most common violation. Iowa auditors compare your exempt purchases against your reported taxable sales.

Mistake 2: Overlooking Taxable Services

Iowa's broad service taxation catches many businesses by surprise. If you receive a taxable service for your own use (not for resale), you must pay sales tax on it.

Mistake 3: Confusing Local Option Tax Rules

The local option tax is destination-based, meaning the rate is determined by where the goods are delivered. Make sure your invoicing system uses the correct rate for each delivery location.

Mistake 4: Not Providing Certificates to Out-of-State Vendors

If you buy inventory from vendors in other states and have it shipped to Iowa, provide those vendors with a Form 31-014a or SST certificate. Without documentation, you may owe use tax.

How Much Can You Save?

Iowa's combined 7% rate (in most locations) produces meaningful savings with a resale certificate.

Use our savings calculator to calculate your exact savings.

Iowa Resale Certificate FAQs

Q: Does the Iowa resale certificate expire? A: Form 31-014a does not have a printed expiration date. However, the certificate is only valid while your sales tax permit is active. Sellers may request updated certificates periodically.

Q: Is there a fee for an Iowa sales tax permit? A: No. Iowa does not charge a fee for sales tax registration.

Q: Can I use the SST certificate instead of Form 31-014a? A: Yes. Iowa is an SST member state and accepts the SST certificate of exemption. Either form is valid.

Q: Can out-of-state businesses use Form 31-014a? A: Yes. Out-of-state businesses purchasing goods in Iowa for resale can provide a completed 31-014a. Include your home state's registration number.

Q: Are digital goods taxable in Iowa? A: Yes. Iowa taxes specified digital goods, including downloaded music, movies, books, and software.

Get Started with Your Iowa Resale Certificate

Iowa's SST membership and straightforward registration process make getting started simple. Register for your sales tax permit, complete Form 31-014a, and start saving on every inventory purchase.

• Expert registration guidance
• Help completing Form 31-014a or SST certificate
• Ongoing compliance support

Get Your Resale Certificate -->

For more details on Iowa's requirements, visit our Iowa state page.

Iowa's broad service taxation means your resale certificate may apply to more purchases than you expect. Understand what qualifies, document everything, and keep your records organized for audit protection.

Related Articles

• What Is a Resale Certificate? - Start with the fundamentals if you are new to resale certificates.
• Sales Tax Exemption Forms: A Complete Guide - Understand the different types of exemption forms.
• Understanding Sales Tax Nexus - Learn when you are required to register in Iowa and other states.