Iowa Sales Tax Guide for eCommerce Businesses
Iowa Sales Tax Guide for eCommerce Businesses
Sales Tax eBook
Contact Us
Iowa's Sales Tax Authority
State Phone Information
800-367-3388
Member of the Streamlined Sales Tax Governing Board?
Tax percent range for remote sellers in Iowa
6% to 8%
The information on this page is for reference only and should not be used as legal or tax advice. If you are concerned about your sales tax obligations it is advised to hire a professional.
This Page was last updated: December 2021
Do you need to collect sales tax in Iowa?
If you have nexus in lowa you will need to first register, then collect and remit sales tax. There are two main ways that sellers can have nexus: physical or economic.
Physical nexus - A seller physical/ tangible presence in the state.
Economic nexus - A remote seller (no physical presence) passes the threshold tor total revenue or number of transactions.
Does Iowa charge sales tax on shipping?
A seller must state the charges for shipping separately on the invoice to be exempt from charging sales tax.
If shipping is included in the price of the product then the seller is obligated to pay sales tax.
Do you have physical nexus in Iowa?
A seller has physical nexus in Iowa if they have any of the following:
An office, warehouse, distribution house or place of business
An employee, contractor or other representative in Iowa, either temporarily or permanently
Installs property it sold in the state
A construction contractor performs a job in the state
Regularly engages in delivery of products to Iowa
Do you have economic nexus in Iowa?
Iowa's Economic Nexus Sales Threshold
$100,000
Economic Transactions Threshold
N/A
Economic Nexus Evaluation Period
Either Current or Previous Calendar Year
Economics Nexus Effective Date
January 1, 2019
What types of sales are included in Iowa's Economic Nexus Sales Threshold?
Gross Sales
All sales including Marketplace Facilitator sales are included in the Economic Nexus Sales Threshold
How does Iowa treat exempt transactions when calculating economic nexus?
Exempt sales and exempt services are included in the threshold
Does Iowa have a Marketplace Facilitator Law?
Yes, Marketplace Facilitators are required to collect and remit sales tax on behalf of sellers on their platform.
Filling Sales Tax
When are Returns Due?
Iowa sales tax returns are generally due the 20th or the final day of the month following the reporting period. If the Iowa filing due date falls on a weekend or holiday, sales tax is due the next business day
How often are Sales Tax Returns filed?
Monthly, Quarterly or Yearly
This period is determined by the state typically by assessing your volume of sales in the state.
Options for filing sales tax returns:
Online - Use the Iowa Department of Revenue website to file online
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