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Filing Instructions: Marketplace and Non-Marketplace Sales

Beginning January 1, 2019, remote sellers and marketplace facilitators are required to collect Iowa sales tax and applicable local option sales tax. Retailers that make Iowa sales through marketplace facilitators that collect Iowa sales tax and make Iowa sales through other channels should take the following steps when completing an Iowa sales tax return:

  1. Report all marketplace and non-marketplace Iowa sales on line 1, "Gross Sales this Quarter."

    eFile and Pay Gross Revenue  
  2. For any Iowa retail sales on which a marketplace collected Iowa sales tax, take an exemption for “Sales Tax Collected by a Marketplace.” This exemption may be taken under line 4.h., the “Other” category on the sales tax return worksheet.

    eFile and Pay Exemptions  
  3. For any non-marketplace retail sales (i.e., sales made through the seller’s own store, sales representatives, website, etc.) that are taxable Iowa retail sales should be included on line 1, "Gross Sales this Quarter." of the retailer's sales tax return. Once included on line 1, those sales will automatically be reflected in line 5 under “taxable amount.” Similarly, if a retailer makes sales through a marketplace that does not collect Iowa sales tax, the retailer should include those on line 1, "Gross Sales this Quarter," and those sales will automatically be reflected on line 5 under “taxable amount.”

    eFile and Pay Taxable Amount  
  4. The retailer must complete the Local Option Entry Schedule to calculate and file local option sales tax on any taxable Iowa sales reported on the retailer’s sales tax return. To calculate the local option sales tax, click on the Local Option Entry Schedule button.

    eFile and Pay LOST button
    After selecting the counties in which you had taxable Iowa sales, enter the amounts of sales within each county. After clicking continue and returning to the sales tax return, line 6b will be calculated.

    eFile and Pay LOST calculation