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.
The exemption applies to purchases of computer hardware by a "commercial enterprise."
A commercial enterprise includes:
- Businesses conducted for profit
- Centers for data processing services to insurance companies, financial institutions, businesses, and manufacturers
A commercial enterprise does not include:
- Nonprofit organizations
"Profession" means a vocation or employment requiring specialized knowledge and often long and intensive academic preparation including:
- 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.