The Department has released new tax guidance to explain the taxability as it relates to certain digital products, software, and related services:
- Digital Products, Software, and Related Services - Web Hosting
“Web hosting” is a common service provided to people or businesses looking to publish a website. The term is not defined by the Iowa Code or existing rule, but it is generally understood as an online service that allows users to publish their website files onto the internet to make available for public access. The Department of Revenue frequently fields questions on whether this service is taxable in Iowa. To provide guidance for interested taxpayers, the Department has added guidance on this topic on its "Taxation of Specified Digital Products, Software, and Related Services" page.
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