Exemption Certificate Sales Form PDF Details

Navigating the complexities of tax exemption within Iowa, the Sales/Use/Excise Tax Exemption Certificate emerges as a crucial document for purchasers seeking to claim exemption from sales, use, and excise taxes. Designed to be completed by the buyer, this certificate serves various entities, including businesses and nonprofits, allowing them to assert their right to purchase goods or services without the extra burden of taxes under specific conditions. Valid for a span of three years, the form requires detailed information, such as the legal name of the purchaser, type of business, address, and the nature of the exemption being claimed, ranging from resale and processing to more specific exemptions like those for qualifying farm machinery, manufacturing equipment, and certain digital products. The inclusion of a signed declaration under penalties of perjury underscores the seriousness with which these claims are to be made, demonstrating the tightrope walked between legal tax avoidance and the penalties of false claims. Keeping this certificate on file, both sellers and purchasers are reminded of their responsibility to the Iowa Department of Revenue, emphasizing the importance of this documentation in maintaining compliance and integrity within the tax system.

QuestionAnswer
Form NameExemption Certificate Sales Form
Form Length3 pages
Fillable?No
Fillable fields0
Avg. time to fill out45 sec
Other names IOWA SALES TAX EXEMPTION CERTIFICATESIowa Sales and Use Tax GuideIowa Department of RevenueIowa Sales and Use Tax GuideIowa Department of RevenueIowa Sales and Use Tax GuideIowa Department of Revenue

Form Preview Example

Iowa Sales/Use/Excise Tax Exemption Certificate

tax.iowa.gov This document is to be completed by a purchaser when claiming exemption from sales/use/excise tax. Certificates are valid for up to three years.

Purchaser legal name:______________________

Doing business as: ________________________

Address:_________________________________

City: ______________State: _____ ZIP: _______

General nature of business:__________________

Phone number: ___________________________

Purchaser is doing business as:

Retailer

Permit number (if required): ________________

Retailer car dealer

Enter your DOT number: ___________________

Governmental agency (including public schools) Wholesaler

Farmer

Lessor Manufacturer Nonprofit hospital

Private nonprofit educational institution Qualifying residential care facility Nonprofit museum

Commercial enterprise Nonprofit food bank

Other _________________________________

Seller legal name: ___________________________

Doing business as:___________________________

Address: ___________________________________

City: ______________ State: _____ ZIP: _________

Purchaser is claiming exemption for the following reason:

Resale Leasing Processing Qualifying farm machinery/equipment Qualifying farm replacement parts Qualifying manufacturing machinery/equipment Research and development equipment Pollution control equipment

Recycling equipment

Qualifying computer or computer peripheral

Qualifying replacement parts/supplies (manufacturing, research & development, pollution control, recycling, computer)

Qualifying computer software, specified digital products and digital services

Grain bins and replacement parts

Other ________________________________

Direct pay Permit number required:

Permit: ________________________________

Description of purchase (Include additional information if necessary):

___________________________________________________________________________________

___________________________________________________________________________________

I, the undersigned, declare under penalties of perjury or false certificate, that I have examined this certificate, and, to the best of my knowledge and belief, it is true, correct, and complete.

Signature of purchaser: _________________________________________________________________

Title: _______________________________________________________ Date: ___________________

Seller: Keep this certificate in your files.

Purchaser: Keep a copy of this certificate for your records.

Do not send to the Iowa Department of Revenue

31-014a (11/3/2021)

Iowa Sales/Use/Excise Tax Exemption Certificate, page 2

Instructions

This exemption certificate is to be completed by the purchaser claiming exemption from tax and given to the seller. The seller must retain this certificate as proof that exemption has been properly claimed. The certificate must be complete to be accepted by the seller. The seller can accept an exemption certificate only on property that is qualified (see the exemptions below) or based on the nature of the buyer. If property or services purchased for resale or processing are used or disposed of by the purchaser in a nonexempt manner, the purchaser is then responsible for the tax.

General Information about Exemptions

Resale: Any person in the business of selling who is purchasing items to resell may claim this exemption. The purchaser can be acting as either a retailer or wholesaler and may not be required to have a sales/use/excise tax permit. Retailers with a sales/use/excise tax permit number must enter it in the space provided.

Processing: Exempt purchases for processing include tangible personal property which by means of fabrication, compounding, manufacturing, or germination becomes an integral part of other tangible personal property ultimately sold at retail; chemicals, solvents, sorbents, or reagents used, consumed, dissipated, or depleted in processing personal property intended to be sold ultimately at retail, and chemicals used in the production of free newspapers and shoppers’ guides. Note: To claim an exemption for fuel used to create heat, power, or steam for processing or for fuel used to generate electric current, use Iowa Sales Tax Exemption Certificate, Energy used in Processing or Agriculture.

Qualifying farm machinery/equipment: The item must be one of the following:

1.A self-propelled implement directly and primarily used in agricultural production, such as a tractor.

2.An implement directly and primarily used in agricultural production that is customarily drawn or attached to a self-propelled implement in the performance of its function, such as a plow.

3.A grain dryer (heater and blower only) directly and primarily used in agricultural production.

4.A snow blower, rear-mounted or front-mounted blade, or rotary cutter used in agricultural production, if attached to or towed by a self-propelled implement.

5.A diesel fuel trailer, seed tender, all-terrain vehicle, or off-road utility vehicle primarily used in agricultural production.

6.Tangible personal property that does not become a part of real property and is directly and primarily used in livestock or dairy production, aquaculture production, or the production of flowering, ornamental, or vegetable plants.

7.Auger systems, curtains, curtain systems, drip systems, fans and fan systems, shutters, inlets, shutter or inlet systems, and refrigerators used in livestock or dairy production, aquaculture production, or the production of flowering, ornamental, or vegetable plants.

8.An auxiliary attachment improving safety, performance, operation, or efficiency for items 1 through 7.

9.A replacement part for items 1 through 8.

10.A container, label, carton, pallet, packing case, wrapping, baling wire, twine, bag, bottle, shipping case, or other similar item used in agricultural, livestock, or dairy production.

Qualifying manufacturing machinery/equipment: The item must be computers, machinery, equipment, replacement parts, supplies, or material used to construct or self-construct computers, machinery, equipment, replacement parts, or supplies used for one of the following purposes:

1.Directly and primarily used in processing by a manufacturer.

2.Directly and primarily used to maintain integrity or unique environmental conditions for the product.

3.Directly and primarily used in research and development of new products or processes.

4.Directly and primarily used in recycling or reprocessing of waste products.

Pollution control equipment: The equipment must be used by a manufacturer primarily to reduce, control, or eliminate air or water pollution.

31-014b (11/3/2021)

Iowa Sales/Use/Excise Tax Exemption Certificate, page 3

Qualifying computer software, specified digital products, and digital services: The product purchased may only be those listed in Iowa Code section 423.3(104), must be purchased by a commercial enterprise as defined in Iowa Code section 423.3(104), and must be used exclusively by the commercial enterprise.

Qualifying computers or computer peripherals: The computers or computer peripherals must be used in processing or storage of data or information by an insurance company, financial institution, or commercial enterprise.

Direct pay: Businesses and individuals who pay their taxes directly to the Department rather than to the seller must enter their Direct Pay permit number in the space provided.

Private nonprofit educational institutions: Purchases made by Iowa private nonprofit educational institutions used for educational purposes are exempt.

Not exempt from sales/use/excise tax are purchases by most other private nonprofit organizations such as churches, fraternal organizations, clubs, etc., for use by those organizations. For more information about sales/use/excise tax exemptions, see the Department's website (tax.iowa.gov).

Nonprofit food banks: Purchases of tangible personal property and taxable services by nonprofit food banks as defined in Iowa Code section 423.3(107) are exempt from sales and use tax. Purchases by these organizations of specified digital products are taxable.

31-014c (11/3/2021)

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1. Begin filling out your Exemption Certificate Sales Form with a number of necessary blank fields. Gather all of the information you need and make sure nothing is missed!

Find out how to fill out Exemption Certificate Sales Form step 1

2. After the first section is done, proceed to type in the applicable information in all these: Enter your DOT number, Nonprofit food bank, Other, Purchaser is claiming exemption, Qualifying replacement, Qualifying computer software, Permit, and Description of purchase Include.

Step no. 2 for submitting Exemption Certificate Sales Form

3. This 3rd step is relatively easy, I the undersigned declare under, Signature of purchaser, Title Date, Seller Keep this certificate in, Purchaser Keep a copy of this, and Do not send to the Iowa Department - these blanks needs to be filled out here.

How one can fill out Exemption Certificate Sales Form stage 3

Regarding Purchaser Keep a copy of this and Do not send to the Iowa Department, be sure you double-check them here. Both of these are the most important ones in this file.

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