Louisiana 2023 Sales Tax Guide

Louisiana Sales Tax in a Word

Louisiana Sales Tax Contacts

The Louisiana Department of Revenue (LDR) is the government agency responsible for managing and administering the state's sales tax system. LDR ensures fair and transparent tax policies are implemented, and they also provide guidance and support to taxpayers.

Here's their contact information:

Website: www.revenue.louisiana.gov

The LDR website is a comprehensive resource, offering an array of online services, including filing sales tax returns, registering a new business, and accessing tax forms and publications.

Phone: (855) 307-3893

The LDR's helpline is available to answer any questions related to sales tax, offering personalized assistance to taxpayers.

Email: sales.inquiries@la.gov

If you prefer to communicate via email, the LDR team is available to provide guidance and answer your sales tax queries.

Mailing Address:
Louisiana Department of Revenue
P.O. Box 201
Baton Rouge, LA 70821-0201

Do You Have Nexus in Louisiana?

In this part of our Louisiana sales tax quest, we'll be exploring the mystical world of sales tax nexus. What is nexus, you ask? Well, it's a magical connection (okay, maybe not magical, but definitely important) between your business and the great state of Louisiana that determines if you need to collect and remit sales tax. But fear not, fellow tax travelers, we're here to help you navigate these nexus nuances like a true sales tax wizard! 

What Creates Sales Tax Nexus in Louisiana?

Before we dive into the different types of nexus, let's briefly touch on what sales tax nexus is. Nexus is a legal term that refers to the connection between a business and a state, creating an obligation for the business to collect and remit sales tax in that state. In Louisiana, there are several ways a business can establish nexus, and we'll explore them one by one.

physical nexus in Louisiana

Physical nexus occurs when your business has a tangible presence in Louisiana. This could be anything from a brick-and-mortar store or an office to a warehouse or a sales representative who works within the state. If you have any of these physical connections, you're setting up camp in the world of Louisiana sales tax collection. 

economic nexus in Louisiana

Economic nexus is all about the Benjamins (or should we say the "Bayou bucks"?). If your business has a certain level of economic activity in Louisiana, you might have an economic nexus. As of 2021, the threshold for economic nexus in Louisiana is $100,000 in sales or 200 separate transactions within a 12-month period. Keep in mind that these thresholds could change, so stay up-to-date on the latest requirements.

affiliate nexus in Louisiana

Affiliate nexus comes into play when your business has a close relationship with another company that has a physical presence in Louisiana. Think of it like a sales tax family reunion, where your business's relatives create a connection to the state.  If your affiliate has a substantial presence in Louisiana, you might be pulled into the sales tax collection party, too.

click-through nexus in Louisiana

Click-through nexus is like a digital handshake between your business and Louisiana. This occurs when you have an agreement with a Louisiana-based entity (like an affiliate, influencer, or website) that refers customers to your business through a link or other online means. If these referrals result in sales exceeding $50,000 in a 12-month period, you've got yourself click-through nexus.

marketplace nexus in Louisiana

Marketplace nexus is all about the online bazaar. If your business operates on a marketplace platform like Amazon, Etsy, or eBay, you might have marketplace nexus. In Louisiana, marketplace facilitators are required to collect and remit sales tax on behalf of their third-party sellers. This means that if you're selling on one of these platforms, the facilitator might be taking care of the sales tax for you.

Louisiana Sales Tax Registration

It's time to embark on the next leg of our Louisiana sales tax adventure: registration. Before you can start collecting and remitting sales tax in the Pelican State, you'll need to register your business and obtain a sales tax license. But never fear, our trusty Accountingprose compass is here to guide you through these uncharted waters. 

How to Register for Sales Tax in Louisiana

Ah, the sweet smell of sales tax registration success is in the air! But before you can revel in your Louisiana sales tax triumph, you'll need a trusty step-by-step guide to ensure your registration journey is smooth sailing. So without further ado, let's dive into the detailed process of registering for sales tax in the great state of Louisiana.

1. Gather your business information: Before you get started with the registration process, make sure you have all the necessary business information at hand. This includes your Federal Tax ID Number (EIN), business name, legal structure, contact information, and details about your products or services.

2. Visit the Louisiana Department of Revenue's online registration portal: To begin your sales tax registration adventure, head over to the Louisiana Taxpayer Access Point (LaTAP)—the one-stop shop for all your Louisiana sales tax needs.

3. Create a user account: If you're new to LaTAP, you'll need to create a user account. Click on "New User" and provide the required information, such as your name, email address, and a secure password. Once you've created your account, you'll receive a confirmation email. Click on the link in the email to activate your account.

4. Log in to your LaTAP account: Now that your account is set up, log in using your username and password.

5. Select "Register a New Business" from the menu: After logging in, you'll be greeted by a dashboard filled with various tax-related options. For our current quest, select "Register a New Business" to begin the sales tax registration process.

6. Complete the Business Registration Form: Fill out the required information in the online form, which includes:

   • Business details: Legal name, fictitious name (if any), business address, and contact information.

   • Ownership structure: Sole proprietorship, partnership, corporation, LLC, or other.

   • Taxpayer identification: Your EIN or Social Security Number (for sole proprietors).

   • Tax registration details: Select "Sales Tax" as the tax type, and provide information about your products or services, your estimated monthly sales, and the date you began or will begin sales in Louisiana.

7. Review and submit your application: Before submitting your application, double-check all the information you've entered to make sure it's accurate. If everything looks good, go ahead and click "Submit." You'll receive a confirmation number for your records, so be sure to save it.

8. Await approval from the Louisiana Department of Revenue: After submitting your application, the Louisiana Department of Revenue will review it. This process typically takes a few days, but it could take up to two weeks during peak times. Keep an eye on your email for an approval notification and your Louisiana sales tax license.

9. Display your sales tax license: Congratulations, you're now the proud owner of a Louisiana sales tax license! 🎉 Be sure to display your license prominently at your place of business (if you have a physical location), as required by law.

With these detailed steps, you'll be navigating the Louisiana sales tax registration waters like a seasoned captain. As always, your Accountingprose crew is here to help you chart the course to sales tax success. Bon voyage!

How Much Does it Cost to Register for a Louisiana Sales Tax License?

Registering for a Louisiana sales tax license won't cost you a single doubloon. That's right – it's completely free! So, you can keep your hard-earned booty safe in your treasure chest while you navigate the sales tax seas.

Do I Need a Federal Tax ID Number or EIN to Register for a Louisiana Sales Tax License?

Which Agencies in Louisiana Might I Need to Register With Additionally?

While the Louisiana Department of Revenue is your main port of call for sales tax registration, you may also need to register with other state agencies depending on your business activities. For example:

• If you have employees, you'll need to register with the Louisiana Workforce Commission for unemployment insurance and wage reporting.

• If you sell alcohol or tobacco products, you'll need to obtain the necessary permits from the Louisiana Office of Alcohol and Tobacco Control.

Remember to research any additional registration requirements specific to your industry or business activities to ensure smooth sailing on your sales tax voyage. 

And with that, you're well on your way to mastering Louisiana sales tax registration! As always, your trusty Accountingprose crew is here to guide you through these uncharted waters. Stay tuned for more exciting tax adventures! 

Collecting Sales Tax in Louisiana

Is Louisiana aN Origin or Destination Sales Tax State? 

First things first, let's clear up a question that often causes confusion among sales tax sailors: Is Louisiana an origin or destination sales tax state? In Louisiana, sales tax is based on the destination, meaning you'll collect sales tax based on the rate at your customer's location. So when you're charting your sales tax course, remember: Destination is the name of the game in the Pelican State. 

What Sales are Subject to Sales Tax in Louisiana?

In Louisiana, most sales of tangible personal property (think: physical items like furniture, clothing, and electronics) and certain services are subject to sales tax. This includes sales made at retail locations, online, and even at special events like festivals and fairs. So whether you're peddling pirate hats at a Mardi Gras parade or selling jambalaya online, you'll need to collect sales tax on your Louisiana sales. 

Is Software as a Service (SaaS) taxed in Louisiana?

What is Exempt from Louisiana Sales Tax?

While many items are subject to Louisiana sales tax, there are a few hidden coves of tax-exempt treasures.

Some examples of exempt items include:

• Prescription drugs and medical devices

• Certain groceries and food items

• Sales to qualified non-profit organizations

• Sales of educational materials to schools

For a complete list of sales tax exemptions in Louisiana, set your spyglass on the Louisiana Department of Revenue's website.

Who is Eligible for Louisiana Sales Tax Exemptions?

What Should I Do If My Customer is Exempt from Sales Tax in Louisiana?

If you find yourself sailing into tax-exempt waters, you'll need to know how to handle a customer who's exempt from sales tax in Louisiana. The key is to obtain and keep a copy of the customer's Louisiana sales tax exemption certificate on file. To do this:

1. Request a copy of the customer's valid sales tax exemption certificate.

2. Verify the certificate's information, including the organization's name, address, and exemption status.

3. Keep the certificate on file for at least three years, as required by Louisiana law.

By following these steps, you'll ensure smooth sailing in the event of a sales tax audit.

What Happens If I Lose a Louisiana Sales Tax Exemption Certificate?

Losing a Louisiana sales tax exemption certificate can feel like losing your trusty treasure map, but don't worry – all is not lost! If you misplace an exemption certificate, simply contact the customer and request a new copy. Remember to keep good records of all sales tax exemption certificates, as they're your best defense in a sales tax audit.

With this trusty Accountingprose guide by your side, you'll be navigating the waters of Louisiana sales tax collection with confidence and ease. Remember, we're here to support you every step of the way. So raise the Jolly Roger and set sail for sales tax success!

Filing and Paying Sales Taxes in Louisiana

You've mastered the art of registering for and collecting sales tax in Louisiana. Now it's time to conquer the final leg of our sales tax journey: filing and paying sales taxes in the Pelican State. With your trusty Accountingprose guide, you'll have smooth sailing as you navigate the waters of Louisiana sales tax filing and payments.

Anchors aweigh! 

What If a Louisiana Sales Tax Filing Date Falls on a Weekend or Holiday?

How Do I File a Louisiana Sales Tax Return?

Filing a Louisiana sales tax return is like charting a course to tax treasure! To keep you on the right track, we've expanded our step-by-step guide to ensure smooth sailing through the filing process. Follow these detailed steps to file your return and reap the rewards:

1. Prepare your records: Before you begin, gather all the necessary information and documents, such as your sales records, tax-exempt sales, and sales tax collected for the filing period. This will make the filing process smoother and more efficient.

2. Log in to your Louisiana Taxpayer Access Point (LaTAP) account: To start the filing process, navigate to the Louisiana Taxpayer Access Point (LaTAP) and log in with your username and password. If you don't have an account yet, you'll need to create one by clicking "Register here" and following the prompts.

3. Select "File a Sales Tax Return" from the dashboard: Once logged in, you'll see a dashboard with various options. Locate and click on the "File a Sales Tax Return" button to begin the filing process.

4. Choose the appropriate filing period and click "Next": After selecting "File a Sales Tax Return," you'll be prompted to choose the filing period for which you're submitting the return. Be sure to select the correct period (monthly, quarterly, or annually) based on your tax liability, and then click "Next" to proceed.

5. Enter your sales information: You'll now be directed to the sales tax return form. Here, you'll need to input detailed information about your sales during the filing period. This includes:

   • Total gross sales (including tax-exempt sales)

   • Sales tax collected (broken down by jurisdiction, if applicable)

   • Total taxable sales (total gross sales minus tax-exempt sales)

   • Sales tax due (total taxable sales multiplied by the sales tax rate)

6. Deduct any applicable tax credits or exemptions: If you qualify for any sales tax credits, exemptions, or adjustments, make sure to enter the appropriate amounts in the designated fields on the form. This will help ensure you're only paying the correct amount of sales tax.

7. Review your return for accuracy: Before submitting your sales tax return, double-check all the information you've entered to ensure it's accurate and complete. Correct any errors to avoid potential penalties or delays in processing your return.

8. Submit your return electronically through LaTAP: Once you're confident that your sales tax return is accurate and complete, click "Submit" to send your return electronically through LaTAP. You'll receive a confirmation message and a reference number for your records.

9. Pay your sales tax due: After submitting your return, you'll need to pay the sales tax due for the filing period. Louisiana offers several approved payment methods, including:

   • ACH debit (direct withdrawal from your bank account)

   • Credit card (through the LaTAP website, subject to convenience fees)

   • Check or money order (mailed to the Louisiana Department of Revenue, along with a voucher generated through LaTAP)

Remember to pay your sales tax by the appropriate due date based on your filing frequency to avoid penalties and late fees.

By following these detailed steps, you'll successfully file your Louisiana sales tax return and stay on course for tax compliance. Smooth sailing, tax adventurers!

What are the various penalties that can be assessed for sales tax filing in Louisiana?

Savvy tax sailors know the importance of avoiding sales tax penalties! In Louisiana, various penalties can be assessed for sales tax filing missteps, such as:

Late Filing Penalty

A 5% penalty for each 30-day period (or fraction thereof) that the return is late, up to a maximum of 25%.

5 Tips to Avoid Common Mistakes When Filing Louisiana Sales Tax Returns

Have sales tax in more than one state?

Check out All of our Sales Tax Guides

And don't forget to check out our blog about Economic Nexus, which serves as an invaluable resource for businesses who have sales that are subject to sales tax. 

This blog is for informational purposes only and the information is accurate as of 2023-06-19. If you want legal advice on sales tax law for your business, please contact a State and Local Tax (SALT) professional. Keep in mind that sales tax regulations and laws are subject to change at any time. While we strive to keep our blog current, this blog possibly may be out of date by the time you review it.