Iowa law imposes both a sales tax and a use tax at a rate of 6%, though local taxes may add 1%. Sales tax applies to sales of goods and services. Use tax applies when sales tax is not collected.
Sales Tax Filing Requirements
- To file your Iowa sales tax, first you need an active sales tax permit.
- Permits must be renewed every two years.
- File returns monthly, quarterly, or annually depending on your sales volume.
- Returns are filed online on the 20th of the month following the period end.
- File a $0 return even with no sales.
Reporting and Compliance
- File complete, accurate returns and payments by each due date to avoid penalties and interest.
- Use available resources for guidance and reach out for help when needed.
Iowa has a 6% state sales tax rate. Local taxes may add 1%. Use tax applies when sales tax is not collected. Sales tax applies to sales of goods and services.
Filing Process
- Obtain an active sales tax permit.
- File returns by the 20th of the month after the period ends.
- File a $0 return even with no sales.
Additional Information
- Charge all customers Iowa’s sales tax plus any local taxes based on the delivery location.
- Contact the Department of Revenue for exemptions or if unsure about any aspect.
You must file Iowa sales tax returns monthly, quarterly, or annually, depending on your sales volume. Returns are filed online by the 20th day after the reporting period ends, or the next business day if the 20th falls on a weekend or holiday. Even with no sales, file a $0 return.
Procedure and Compliance
- Obtain an active sales tax permit and renew it every two years.
- File complete, accurate returns and payments to avoid penalties and interest.
- Seek help whenever needed for a streamlined filing process.