Iowa Sales Tax Guide

A step-by-step guide to understanding Iowa sales tax rules.


It's cliche to think Iowa is only a place for rolling corn fields. Millions of dollars in sales and use tax changes hands in the Hawkeye state every quarter. If you're selling taxable goods to Iowans and you have nexus there, you have a responsibility to collect, file, and remit sales tax. Our guide to Iowa sales tax can help you understand where to get started.

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Table of Contents

An Overview of Iowa Sales Tax

Understanding where, when, and how to collect Iowa sales tax is no easy task. Whether you're collecting tax dollars at the point-of-sale or collecting Iowa internet sales tax, our guide will break down the sales tax compliance process into focused, easy to understand chapters.

Iowa Sales Tax Nexus

Understanding whether you need to collect, file, and remit Iowa sales tax depends on a concept known as nexus. In this chapter, we'll take a look at situations that may trigger in Iowa such as storing inventory in the state, hiring state residents, and click-through nexus.

Registering to Collect Iowa Sales Tax

You'll want to get started establishing Iowa sales tax compliance by understanding how to get your business registered for the necessary sales tax permit. We'll walk you through the process and help you understand when is the best time to get your business registered in Iowa.

Collecting Sales Tax in Iowa

After you've registered your business with the Iowa Department of Revenue, you're ready to begin collecting sales tax. We'll review topics such as Iowa sales tax exemptions, sales tax holidays, and determining state and local sales tax rates.

Filing Iowa Sales Tax Returns

Now that you're business is registered with the Iowa Department of Revenue and collecting sales tax, you'll need to file tax returns in an ongoing basis. We'll help you gain a deep understand of the process of filing sales tax returns. Topic covered include filing frequencies, filing on behalf of a client, and what happens if you file late.

Iowa Sales Tax Filing Due Dates

Every business that registers to collect Iowa sales tax will be assigned a filing frequency. In this chapter, we'll take a look at the filing frequencies and associated due dates supported by the Iowa Department of Revenue.

Late Filing Penalties, Fines & Interest

We know, mistakes happen and, from time to time, sales tax filing deadlines are missed. In this chapter, we'll take a look at what penalties you may be required to pay should you miss your assigned Iowa sales tax filing date. We'll also consider interest charges for late sales tax payments.

Sales Tax on Iowa Shipping & Handling

The rise of the internet economy has made it possible for buyers around the world to order your products. Did you know shipping and handling may be taxable? In this chapter we'll cover sales tax on shipping and handling in Iowa. You'll want to pay attention here because there are some important details pertaining to invoicing you'll want to understand.