IDR Releases Updated State Tax Guidance: Iowa Sales and Use Tax on Manufacturing and Processing

Friday - 06/11/2021

The Iowa Department of Revenue has released updated state sales and use tax guidance:

  • Iowa Sales and Use Tax on Manufacturing and Processing
    Several years ago, the Department published on its website a publication for businesses engaged in manufacturing or processing. After several years of significant law changes, the Department took down that page until it could be reviewed in detail. The Department is pleased to republish this page. This guidance addresses the taxability of purchases of tangible personal property, specified digital products, and services common to the manufacturing industry. This is a general guide and is not binding on taxpayers or the Department. Please refer to relevant Iowa Code provisions and administrative rules cited throughout the webpage for binding guidance, interpretations, and examples. For issues not addressed in this guidance, call Taxpayer Services at 800-367-3388 or 515-281-3114 or submit a request for tax guidance.

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