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Computer Purchases by Doctors, Attorneys, CPAs and Other Professionals

Exemption for Computer Hardware

An exemption from Iowa sales / use tax exists in some situations for purchases of computer hardware. See Iowa Sales Tax on Computers for details.

Commercial Enterprise

The exemption applies to purchases of computer hardware by a "commercial enterprise."

A commercial enterprise includes:

  • Businesses conducted for profit
  • Manufacturers
  • Centers for data processing services to insurance companies, financial institutions, businesses, and manufacturers

A commercial enterprise does not include:

  • Professions
  • Occupations
  • Nonprofit organizations


"Profession" means a vocation or employment requiring specialized knowledge and often long and intensive academic preparation including:

  • Doctors
  • Attorneys
  • CPAs
  • Other similar persons
  • Professional corporations

Sales / Use Tax Exemption Not Allowed

Since professions are excluded from the definition of a commercial enterprise for purposes of this exemption, Iowa sales / use tax must be paid when professions purchase computer hardware.