Iowa sales tax guide 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.
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:
–