At the time of a taxable purchase, Iowa state sales/use tax is collected by the retailer from the buyer. Unlike tangible personal property, which is subject to sales/use tax unless specifically exempted by Iowa law, services are subject to sales/use tax only when specified by Iowa law. Iowa sales tax is due when the first use of a taxable service occurs, or potentially could occur. The Iowa use tax complements the Iowa state sales tax. Generally, when a taxable service is purchased or obtained outside of Iowa for use in Iowa, it is subject to Iowa use tax.
The Department makes every attempt to keep this list current. However, please reference 701 IAC chapter 26 for the official listing of taxable services in Iowa. If you need assistance in determining whether or not a service is taxable, please contact our tax specialists by email or telephone at 1-800-367-3388.