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Louisiana Issues Guidance for Remote Sellers and Their Buyers Regarding Local Sales & Use Taxes

The Louisiana Sales and Use Tax Commission for Remote Sellers continues to release guidance on how taxpayers should treat the sales tax rate of 8.45% collected by eligible Remote Sellers. On May 17, 2019, the commission released a bulletin adding clarification for local taxpayers in a jurisdiction with no local sales tax or sales tax less than the 4% rate collected by Remote Sellers. Additionally, a draft bulletin was recently released that discusses how taxpayers in a jurisdiction greater than the 4% are impacted.

According to Remote Sellers Information Bulletin No. 19-001, Louisiana taxpayers in a jurisdiction with a rate lower than 4% must file a Sales and Use Tax return with the local authority to accrue and remit the correct use tax that would have normally been due. After the local return is filed, the taxpayer can request a refund annually with the Department of Revenue for the 4% paid to the Remote Seller. Taxpayers in a local jurisdiction with no sales and use tax must submit an affidavit affirming that the delivery and use of the taxable item will occur in a local political jurisdiction where no use tax is levied. The affidavit will be submitted in place of local sales and use tax returns.

As of June 23, 2019, the Commission has not released the annual refund request form that was originally supposed to be made available prior to July 1, 2019. However, the Commission has indicated that the form will be finalized in the upcoming weeks.

Remote Sellers Information Bulletin No. 19-003 is currently drafted to provide direction to Louisiana taxpayers in local jurisdictions with a local sales and use tax rate higher than the 4%. If the Louisiana taxpayer is located in jurisdiction with a sales tax rate greater than 4%, the taxpayers would not be obligated to accrue the additional use tax not billed by the Remote Seller.

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