Louisiana Releases Additional Remote Seller Guidance

The Louisiana Department of Revenue has released two additional bulletins providing additional administrative guidance for remote sellers. The Louisiana Sales and Use Tax Commission for Remote Sellers (Commission) will issue a notice of the enforcement date for remote sellers required to collect state and local sales tax based on the state’s economic nexus rules. Notice must be given no later than 30 days prior to the enforcement date and the Commission does not expect to enforce registration and collection prior to July 1, 2020. However, remote sellers are encouraged to voluntarily apply with the Louisiana Department of Revenue to collect the 8.45% combined rate on remote sales. The Commission expects a simplified transfer of those applicants once the enforcement date is established.

Sellers approved to collect the combined rate are commonly referred to as “Direct Marketers” and may not be required to separately register with the Commission after an enforcement date is selected.

If a remote seller collects the combined 8.45% rate from a Louisiana taxpayer, the taxpayer does not owe tax to local political subdivisions which levy a local sales and use tax rate higher than the 4% additional tax. For more information and examples, you can read Bulletin 19-002 and Bulletin 19-003 (Remote Sellers Information Bulletin 19-002; Remote Sellers Information Bulletin 19-003, Louisiana Department of Revenue, July 22, 2019)

Posted on August 12, 2019