Do you need to collect and remit sales tax in Louisiana?
Retailers who sell in Louisiana may be subject to sales tax if they sell taxable items such as tangible personal property, (such as clothing, furniture, and electronics), or some taxable services, (including lawn care, car repairs, and cleaning services). Louisiana refers to its local taxpayers as Dealers, distinguishable from other taxpayers such as users, consumers, lessees and/or persons receiving taxable services. However, out-of-state businesses are referred to as Remote Sellers, and while they may collect and remit sales tax at the same rate as Dealers, they will only need to do so if they meet a certain criteria.
It is important to note that there are also several items or services that are exempt from Louisiana sales tax. Some of these exemptions are:
- Food for home consumption, (typically, unprepared foods like some groceries)
- Utilities
- Prescription drugs
- Sales for resale with a valid Louisiana resale exemption certificate
Do you have sales tax nexus in Louisiana?
Sales tax nexus refers to the minimum level of activity or presence that a business must have in the state before it is required to collect and remit sales tax. There are two types of nexuses in Louisiana: physical and economic. Any business (or Dealer) that has physical presence in Louisiana, such as a store or warehouse, will have nexus regardless of revenue. Out-of-state businesses with no physical presence in Louisiana may qualify for economic nexus if their sales or transactions exceed a set threshold.
Physical sales tax nexus in Louisiana
Physical nexus can come in many forms, several of which may not be as obvious as a storefront. According to Louisiana Sales and Use Tax Frequently Asked Questions, the following activities in Louisiana meet the requirements of physical presence:
- Owning or operating retail spaces
- Owning, leasing, maintaining, occupying, or using an office, place of distribution, sales or sample room, warehouse or storage place or other place of business
- Having an employee, representative, agent, salesperson, canvasser or solicitor operating in Louisiana under the authority of the retailer or subsidiary
- Storage of property in third party facility
It is important to note that dealers with physical nexus in Louisiana are responsible for collecting and remitting sales tax for both the state and any parishes they have physical nexus in. Parishes are the different cities, counties and districts in Louisiana that impose their own sales tax rates separate from the state rate of 4.45%.
Economic sales tax nexus in Louisiana
Any remote seller that has economic nexus in Louisiana will have exceeded one or both of the following economic thresholds in the current or previous calendar year:
- Exceeding $100,000 of gross revenue from Louisiana consumers
- Having 200 or more separate transactions to Louisiana consumers
Determining nexus for your business can sometimes be a complex and daunting task, and regardless of the information we’ve provided here, there are some business activities or circumstances that make it even more difficult. Many businesses struggle to navigate the intricacies of nexus determination, and even end up paying thousands of dollars to accounting firms to get answers. That’s why we offer nexus determination as an a-la-carte or package deal for businesses at affordable prices. With over 20 years of experience in federal and state tax and accounting laws, we’re a trusted partner for many businesses in need of nexus review services. Contact us now for a consultation!
Are marketplace facilitators required to collect and remit sales tax in Louisiana?
In Louisiana, if you sell goods or services remotely through a marketplace, the marketplace facilitator may be required to handle your sales tax responsibilities for you. A marketplace facilitator is essentially a person or company that helps you sell your products online by providing a platform, website, or other tools to help advertise and list your goods. If the facilitator’s sales in Louisiana exceed certain thresholds—which are $100,000 in gross sales or 200 separate transactions in the current or previous calendar year—they must register for and collect sales tax on your behalf. This means that as a remote seller, you don’t need to worry about collecting and remitting sales tax for the transactions made through that marketplace facilitator, as long as they are registered to collect in Louisiana.
What platforms are marketplace facilitators?
Filing Louisiana Sales Tax
Before you can begin to file your Louisiana sales taxes, your business must be registered with the Louisiana Department of Revenue. The method of registration and filing is a bit different depending upon whether you are a Louisiana Dealer or a Remote Seller, so we’ve divided these two taxpayers and the different ways in which they register and file in the table below.
| Dealers | Remote Sellers |
| Register for a sales tax permit – If your business has not already registered with Louisiana, you must register with the Secretary of State at Louisiana geauxBIZ. After registration, you can apply for a sales tax account by using either LaTAP or Form R-16019. Additionally, you may need to register with the Louisiana Parish E-File to collect and remit any parish/city taxable sales. | Register for a sales tax permit – Remote sellers making sales into Louisiana are required to register with the Sales and Use tax Commission for Remote Sellers, which is the sole entity used by Louisiana to collect and remit sales and use tax from remote sellers. |
| Collect and track sales tax – Determine the applicable sales tax rate for each sale based on the location of the customer and collect the right amount of sales tax. Keep accurate records of all sales and the amount of sales tax collected. | Collect and track sales tax – Determine the applicable sales tax rate for each sale based on the location of the customer and collect the right amount of sales tax. Keep accurate records of all sales and the amount of sales tax collected. |
| Filing sales tax returns – Louisiana dealers can filed their returns through LaTAP, Parish E-File, or by filling out paper form R-1029. If you have nexus in any of the Louisiana parishes, you will need to either file on the Parish E-file or register with your parishes individually. If sales tax payments during the prior 12-month period average $5,000 or more, taxpayers must pay their taxes electronically. | Filing sales tax returns – Remote sellers can file their returns through the Commission, by creating an account on Louisiana Taxpayer Access Point (LaTAP), or by filling out paper form R-1029. If sales tax payments during the prior 12-month period average $5,000 or more, taxpayers are required to pay their taxes electronically. |
| Keep records – Keep records of your sales and sales tax collections for at least three years, in case of an audit. You should also keep records of any exemption certificates you receive from customers who are exempt from sales tax. | Keep records – Keep records of your sales and sales tax collections for at least three years, in case of an audit. You should also keep records of any exemption certificates you receive from customers who are exempt from sales tax. |
Taxpayers that file on or before their sales tax due date are allotted a vendor’s compensation. The current rate of vendor’s compensation is 1.05% of the total amount of sales and use taxes due, with a maximum compensation of $1,500 per calendar month.
Let us file for you!
If filing sales tax returns is too overwhelming or time-consuming, you’re not alone. Running a business is demanding work and filing tax returns can be a pain, especially when you need to keep up with all the different rules and regulations. We at SalesTaxSolutions.US are here to make things easier! As a company, we help businesses like yours deal with the many state-by-state regulations and file your sales tax returns for you. We’ve got 20 plus years of knowledge and experience to help you get back to saving time and making money as soon as possible. Message, email or call us at 888-544-7730 for a free quote today!
When are sales tax returns due in Louisiana?
Louisiana assigns one of two filing frequencies to taxpayers: monthly or quarterly. Filing frequencies are typically assigned based on monthly tax liability; the more tax due, the more often a business will need to file. Regardless of frequency, tax returns are due on or before the 20th of the month following a calendar month or a calendar quarter.
