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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.

As of July 1, 2022, all tax types are reported on a single Iowa sales and use tax form. Confirm your filing frequency and state permit number on the registration information provided by the state.

  • Select IA 32-028 (Iowa Sales and Use Tax Return) to report all tax types.
  • If you have multiple physical locations registered in Iowa that require separate reporting: select “YES” as the answer to the question when setting up your scheduled return.
    • Additional information: Does the online return ask if “you wish to upload your consolidated schedule”? Generally, this indicates a location reporting requirement, in which case you would indicate “YES”. If this option is not available online then please select “NO”.
  • For both options:
    • Create an online account with the GovConnectIowa to confirm your filing frequency and registration information.
    • Enter your login credentials for the GovConnectIowa website.
    • Enter your Iowa Permit Number: Enter your nine-digit Iowa registration ID (permit number) without any non-numeric characters. Example: 123456789

Iowa sales and use tax returns usually must be filed by the last day of the month following the end of the reporting period.  A return must be filed for each period even if no tax is due.

Supported Filing Frequencies

  • Monthly
  • Annual
    • Calendar Annual - Default annual setting (1/1 - 12/31)

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