As an e-commerce seller, you will need to collect sales tax in Louisiana if you have:
(1) gross revenue exceeding $100,000 during the current calendar or immediately preceding calendar year (economic nexus),
(2) Physical presence in Louisiana (physical nexus).
Below, we will highlight some of the basic provisions of Louisiana sales tax law.
What is the tax rate range for Louisiana?
State: Louisiana’s general sales tax rate is 4.45%.
Local: Local jurisdictions can range from 0% to 8.5%.
Do you have physical or economic nexus in Louisiana?
Physical nexus. Certain business activities create physical nexus in Louisiana. If you have physical nexus, you are required to collect and remit sales tax on all taxable sales that are shipped to Louisiana. Physical presence includes, but is not limited to, the following activities in Louisiana, whether done permanently or temporarily, directly or indirectly, or through an agent or subsidiary:
- 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, salesman, canvasser, or solicitor operating in Louisiana under the authority of the retailer or subsidiary; and
- storage of property in a third-party facility.
What is physical presence? (#3 in Frequently Asked Questions)
Economic nexus. Louisiana recognizes economic nexus for any vendor with $100,000 or more in gross revenue during the current calendar or immediately preceding calendar year. Once you have economic nexus established, you will be obligated to collect sales tax from buyers in the state.
- Remote sellers are required to register with the Louisiana Sales and Use Tax Commission for Remote Sellers (“Commission”) no than 30 calendar days after meeting the economic nexus thresholds
- Remote sellers shall commence collection of state and local sales and use tax at actual rates and bases, once notified the Commission has approved the application, no later than 60 days after surpassing either of the criteria
- Remote sellers only use direct sales for delivery into Louisiana to calculate whether the economic nexus thresholds have been met.
- Sales made through a marketplace may be excluded because those sales determine whether the marketplace itself meets the economic nexus thresholds.
What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Leases and rentals of tangible personal property
- Certain services
- Prepared food by certain establishments for on-premise consumption
- Software as a Service (SaaS)
What are examples of sales of nontaxable/exempt items?
- Food sold for further preparation and consumption in the home
- Natural gas and electricity
- Prescription drugs
- Certain agricultural items and commodities
Are there any sales tax holidays?
Currently, Louisiana does not have any sales tax holidays.
Is Louisiana a member of the SST (Streamlined Sales Tax)?
Currently, Louisiana is not a full or associate member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in this state?
You can register online at: Louisiana Department of Revenue (LaTAP)