Iowa mandates electronic sales tax filing starting July 1 for all businesses

The Iowa Tax Webinar held on July 9, 2025, focused on the critical topic of out-of-state sales tax and the new electronic filing requirements for businesses operating in Iowa. The meeting emphasized the importance of using the GovConnect Iowa portal for managing sales tax permits and filing returns.

Participants were informed that, starting July 1, all sales tax returns must be filed electronically. Paper returns will not be accepted and will be disregarded, leading to estimated tax liabilities and potential penalties for non-compliance. This change aims to streamline the filing process and ensure timely submissions.

The webinar outlined the filing frequency based on sales tax collection. Retailers collecting at least $1,200 in sales tax annually are required to file monthly, with returns due at the end of the month following the sale. For those with lower sales, an annual filing option is available, requiring just one return and payment due by January 31 each year. Additionally, businesses that operate seasonally can opt for a seasonal filing schedule, allowing them to file only during the months they make sales.

The importance of adhering to these filing deadlines was stressed, as failure to file could result in the assumption of sales and subsequent tax estimates by the Department of Revenue. The meeting served as a crucial reminder for businesses to stay compliant with Iowa's tax regulations and utilize the available electronic resources for efficient tax management.