Any business that sells goods or taxable services within the state of Louisiana to customers located in Louisiana is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in Louisiana must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Do you need to get a Sales Tax certificate in Louisiana State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct business within the state
- You sell or ship products to a buyer in Louisiana
- You have a distribution location such as a storage area or warehouse space
- You have employees physically present in Louisiana (including independent contractors, sales persons, representatives, or agents)
- Your business delivers merchandise in the state of Louisiana in company owned vehicles
- Your business rents, leases, or sells tangible personal property in the state of Louisiana
- Your business has taxable services in the state of Louisiana
What constitutes taxable services in Louisiana State?
Hotel Rooms, Admissions to athletic/recreational facilities or events and amusement and entertainment facilities /events, printing services, laundry and dyeing services, janitorial services, telecommunication services, repairs to personal tangible property.
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Louisiana?
As a wholesale company conducting business in the state of Louisiana, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you need to collect sales tax on shipping and handling of merchandise?
Shipping and handling charges are generally not taxable if you separate it from the purchase price of the item being sold on the invoice.
Is there sales tax on drop shipments in the state of Louisiana?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Louisiana are required to have sales tax added
Are there any exemptions to taxable items sold?
Medical devices, raw materials and machinery, newspapers, grocery food, and custom downloadable software are tax exempt
Register for a Louisiana sales/use tax number
Louisiana state, county, city, & municipal tax rate table