515-223-5119 info@ineda.com

Applying Iowa Sales Tax to Discounts, Rebates and Coupons Discounts

[2013 | Keywords: Iowa Legislation, Sales Tax, Discounts, Rebates, Coupons] The word “discount” means “to buy at a reduction.” Iowa sales tax applies to the reduced price paid by the customer. Example: The price of a hammer at George’s Hardware is usually $10. The store reduces the price to $8. Customers who buy the hammer at the discounted price will pay Iowa sales tax on $8. Certain retailers bill their customers on a gross and net basis, with the difference considered to be a discount for payment purposes. When a customer does not resolve the bill within the net payment period,… Read More »