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Can I collect sales tax from customers in different states without violating tax laws in Louisiana? What are the requirements?

Based on the information provided in the Louisiana Administrative Code, if you are a remote seller or a marketplace facilitator facilitating a sale for a marketplace seller through a marketplace, you may be required to collect and remit state and local sales and use tax on remote sales for delivery into Louisiana if you meet certain criteria.

Requirements for Remote Sellers

If you are a remote seller, you must collect and remit state and local sales and use tax on all taxable remote sales for delivery into Louisiana if you meet either of the following criteria during the previous or current calendar year:

  • Your gross revenue for sales delivered into Louisiana exceeded one hundred thousand dollars from sales of tangible personal property, products transferred electronically, or services.
  • You sold for delivery into Louisiana tangible personal property, products transferred electronically, or services in two hundred or more separate transactions.

If you meet either of these criteria, you must submit an application for approval to collect state and local sales and use tax on remote sales for delivery into Louisiana to the Louisiana Sales and Use Tax Commission for Remote Sellers no later than thirty calendar days after meeting either of the criteria. You must commence collection of state and local sales and use tax no later than sixty days after meeting either of the criteria.

Requirements for Marketplace Facilitators

If you are a marketplace facilitator, you shall be considered the dealer for each remote sale for delivery into Louisiana and transacted on a marketplace on behalf of a marketplace seller. You shall be responsible for all obligations imposed on dealers under the Louisiana Administrative Code and shall keep records and information required by the commission to ensure proper collection and remittance of sales and use tax, including but not limited to exemption certificates and information from the marketplace seller that may be used to determine the taxability of remote sales.

A marketplace facilitator shall collect and remit state and local sales and use tax on all taxable remote sales for delivery into Louisiana that the marketplace facilitator transacts on its own behalf or facilitates on behalf of a marketplace seller regardless of whether the marketplace seller is a dealer, has registered as a dealer in Louisiana, or otherwise would have been required to collect state and local sales and use tax if the remote sale had not been facilitated by the marketplace facilitator.

Additional Sales and Use Tax

Louisiana allows certain municipalities to impose an additional sales and use tax not to exceed one percent on the sale at retail, the use, lease or rental, consumption, and the storage for use or consumption, of tangible personal property, and on sales of services in the municipality [2.1]. Additionally, a district may levy and collect within the district a sales and use tax in an amount not to exceed one percent for the payment of salaries of teachers employed in the public elementary and secondary schools in the district and/or for the operation of the public elementary and secondary schools in the district [2.2].

Streamlined Sales and Use Tax Agreement

Louisiana is authorized and directed to enter into the Streamlined Sales and Use Tax Agreement with one or more states to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce [3.1].

In summary, if you are a remote seller or a marketplace facilitator facilitating a sale for a marketplace seller through a marketplace, you may be required to collect and remit state and local sales and use tax on remote sales for delivery into Louisiana if you meet certain criteria. It is recommended that you consult with a tax professional to ensure compliance with all applicable tax laws. Additionally, certain municipalities and districts in Louisiana may impose additional sales and use taxes.

Source(s):
Jurisdiction

Louisiana