Iowa – IDR State Tax Reform Guidance: Taxation of Digital Products & Services

In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure. The Department has released new guidance to explain the following tax change: 

  • Taxation of Specified Digital Products, Software, & Services – Beginning January 1, 2019, digital goods or service may be subject to sales tax, applicable local option sales tax, and use tax, depending on various factors. This guidance explains what is subject to tax including computer software, specified digital products including webinars, the sale of storage services, and information services. Additionally, this guidance provides further information regarding exemptions to taxation.

The Department maintains a tax reform page to provide taxpayers with guidance on tax reform topics. Additional guidance is added as it becomes available. 

For the Iowa Department of Revenue Click HERE