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Set Up Iowa Returns

This article applies to:Returns Central

Tell Us Where You Collect Tax

Add Iowa to the places where you collect tax. This tells AvaTax to calculate tax on Iowa transactions. See the Iowa Department of Revenue website for details about nexus, registration, and taxes in Iowa.

Before you add Iowa, there are two things you need to do:

Iowa has both sales and sellers use tax. Pick the right tax type based on the way your business is registered and the tax return you need to file.

"Sourcing" determines the location where a sale is taxed. Iowa is a destination-sourced state.

Add Your Company Locations

Add any physical locations you have in Iowa. This is important for reporting on your return.

When you add a location:

  • Enter the nine-digit, state-assigned permit number as the Location Account Number under Additional Information
  • After you validate the location address, make sure it falls in the jurisdictions you expect. If not, you may want to manage your jurisdiction overrides

You must get a sales tax permit for each of your Iowa business locations. Each location is assigned its own nine-digit permit number. Example: 1-23-456789

If your business has sales tax permits for more than one location, you can file the locations together under a consolidated return. Request to file a consolidated return on the Business Tax Registration form.

You can make sales and collect sales tax as soon as you submit your application. You don't have to wait for your permit number.

Contact the Iowa Department of Revenue if you're not sure if you need a permit.

Schedule Your Returns

After you tell us where you collect tax and add locations, you're ready to schedule returns. Go to Returns in AvaTax to provide a funding power of attorney and schedule your returns

Your company name and taxpayer ID from Your Company Details show up on your returns. Make sure they match what’s on your registration information.

Use this info to schedule your returns. Keep in mind that the selections you made when you told us where you collect tax, any location codes you entered, and the forms you select are related and should tie together.

  • Select IA 32-022 if you're not required to break your sales out by location
  • Select IA 32-022 for Outlets if you're required to break your sales out by location
  • Select IA Consumer Use Worksheet if you're required to file a consumer use tax return
  • Select IA Monthly Deposit, in addition to the IA 32-022, if you're required to file monthly

Create an online account with the Iowa Department of Revenue to confirm your filing frequency and registration information

Enter your nine-digit Iowa registration ID (permit number) without any non-numeric characters. Example: 123456789

The State of Iowa also issues an eight-digit Business eFile Number. Example: 12345678 They usually mail it directly to you if you have an active business tax permit. Enter this number when you schedule the return.

Iowa sales and use tax returns usually must be filed by the last day of the month following the end of the reporting period. However, early monthly sales tax filers are required to file by the 20th of the month following the end of the reporting period. A return must be filed for each period even if no tax is due.

Under some circumstances, taxpayers are required to make semi-monthly payments to the state. 

  • If you're required to make semi-monthly prepayments (two prepayments a month), Avalara is not able to make the prepayments on your behalf.
    • This means that you must submit all prepayments directly to the Iowa Department of Revenue. 
    • After you've submitted the prepayments, go to the Manage and Approve Returns page prior to the quarterly return being filed and enter the amount you've prepaid as a Prior Payment. Refer to this guide for help adding a Prior Payment amount to your return.
  • See the Iowa Department of Revenue website or contact the Iowa Department of Revenue at 800-367-3388 or 515-281-3114 for more info about prepayments

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