The Internet of Things (IoT), as a pervasive paradigm, is becoming an integral part of the tech industry and academic research in recent years. It forms a ubiquitous heterogeneous network connecting humans and things. The basic premise is acquiring data from the environment with sensors and remote intelligent management via actuators. For IoT service providers, time and place are functional parameters. Whereas most IoT scenarios are in indoor spaces and GPS cannot fully cover them, applying an indoor positioning system (IPS) is necessary. Besides, indoor enabling technologies can leverage the capability of IoT in context-aware services. In this article, we aim to provide a panoramic view of IPSs and localization services with the centrality of IoT. First, we explain the main concepts and review the latest positioning methods, techniques, and technologies with IoT remarks. Then, we discuss technical implementation challenges and open issues with feasible solutions. Finally, we mentioned location-based services (LBSs), real IoT applications, and active vendors in the realm of positioning services. This article provides a real insight into LBSs in IoT for future research.