Iowa

Iowa

Standard rate: 

6% – 8 %

Reduced rate:

Sales tax-free products and services:

From 12:01 a.m. Friday through midnight Saturday, for clothing or shoes.

If selling at a price less than $100.00.

Who is obliged to register sales tax:

When you sell in Iowa and have “sufficient activity” in Iowa, you need to be registered to collect and pay sales tax in Iowa.

Threshold:

Dealers with sufficient physical or economic presence to establish nexus in Iowa must register to collect sales tax. This includes online retailers or remote sellers that meet the $100,000 or more in a current or preceding calendar year threshold.

Merchant thresholds by state

Marketplace thresholds by state

The special rules are applicable for the SAAS business.

Software as Service Tax Thresholds by state

Online Marketplaces:

If all of your sales in Iowa are through a marketplace reseller platform, you can not register for paying Iowa sales tax. Your marketplace facilitator pays the sales tax itself.

Registration procedure:

You can be registered online on the Iowa Taxes website.

Sales tax payment and filing date: 

Depending on your tax liability, determine your filing frequency – either annual, monthly or quarterly:

Annual – $0 to $10.00
Quarterly – $10.01 to $500.00
Monthly – $500.01 to $5,000.00
Monthly with Prepayment – $5,000.01 and up

Returns are always due on the 20th day of the month following the reporting period.  If the filing due date falls on a weekend or holiday, sales tax is due the next day.

Penalty and interest:

  • Late Filing – 10% of tax due
  • Late Payment – 5% of tax due

Discount: