Iowa: Sales Tax Handbook
How to file your sales taxes in Iowa
Once your business has an Iowa sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the Iowa government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In Iowa
Iowa practices a destination-based tax system. This means that the amount of sales tax that must be charged is determined by the buyers' location. You simply determine the tax rate of the area to which you are shipping, and then you charge that tax rate.
Sales Tax Collection Discounts In Iowa
While many states allow merchants to keep a small percentage of the sales tax they collect as a collection discount, or compensation for the work put in collecting the tax on behalf of the state, Iowa does not currently allow this.
Your Iowa Sales Tax Filing Requirements
There are three steps you must complete in order to file your taxes in Iowa. You must first calculate how much you own in taxes, then you must file your return, and finally, you must make your payment.
Tax payments in Iowa must be filed using their online payment system that can be found at the Iowa Department of Revenue. This is the web address, https://tax.iowa.gov/efile-pay.
Payments for prior months receipts are due on 20th day of the month following the close of sales. For example, April's receipts must be calculated and paid by May 20th.
If you file quarterly, your payment schedule is as follows:
* Quarter 1 (Jan.-Mar.) due Apr. 20
* Quarter 2 (Apr.-Jun.) due Jul. 20
* Quarter 3 (Jul.-Sept.) due Oct. 20
* Quarter 4 (Oct.-Dec.) due Jan. 20
Annual taxes are due on the 31st of January if you file only once per year.
Penalties for filing late are as follows:
* If you file late, you will be charged a 10% late filing fee.
* If you pay late, you will be charged a 5% late payment fee.
Your Iowa Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the last day of the month following reporting period. For a list of this year's actual due dates, see our calendar of Iowa sales tax filing due dates.
Where To File Your Iowa Sales Tax Return:
Filing Your Iowa Sales Tax Returns Online
Iowa supports electronic filing of sales tax returns, which is often much faster than filing via mail.Fuel tax returns are required by state law to be filed electronically.
Iowa allows businesses to make sales tax payments electronically via the internet.Electronic payments are required for all taxpayers.
You can process your required sales tax filings and payments online using the official Iowa eFile & Pay System website, which can be found here . You should have received credentials to access your Iowa eFile & Pay System account when you applied for your Iowa sales tax license.
Simplify Iowa sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
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