Louisiana sales tax guide
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You are reading 1stopVAT’s Louisiana sales tax guide. This article will explain the details of the sales tax in Louisiana (LA).
Our experts at 1stopVAT have updated the article with the current and relevant information on how sales tax works in the Pelican State.
You’ll find a wide variety of information related to sales tax as it relates to consumers and businesses, including who is responsible for paying state sales tax and where you can find information about the taxes.
Whether you’re wondering what is the sales tax rate in Louisiana, whether you need to register for Louisiana tax sales, or the filing frequency of Louisiana state sales tax, our sales tax guide will help.
If you have more questions or require specific assistance, don’t hesitate to contact the 1stopVAT team for help.
A Digest on Louisiana sales tax (LA)
A sales tax is a tax paid to a tax authority (state or local) on the sale of specified products and services. Louisiana enacted a general state sales tax in 1938, and the rate has since climbed to 4.45%.
In addition to the Louisiana sales tax rate, there may be one or more local sales taxes and one or more special district taxes, ranging from 0% to 7%.
The total sales tax rate in Louisiana ranges from 4.45% to 11.45%, depending on the sale area.
Louisiana Tax Nexus
The requirement to collect Louisiana sales tax is dependent on having a solid link with the state. This is referred to as nexus and determines whether the state has the legal right to oblige your company to collect, pay, and return sales tax.
Sales tax nexus can be established by remote or out-of-state sellers who have no physical presence in Louisiana in the following ways:
Having someone solicit product sales on behalf of the retailer in Louisiana is an attribute of affiliate nexus.
When a business generates more than $100,000 in sales of taxable or exempt goods or services to Louisiana or completes 200 or more unique sales transactions there, economic nexus is established, and the remote seller is required to register with the state, collect, and pay sales tax in Louisiana.
Inventory in the State includes products held by Fulfillment by Amazon (FBA) merchants and kept at warehouses in Louisiana.
Businesses that participate in trade shows and have sales goals establishes a trade show nexus. If you only attend trade shows, however, there is no nexus established.
Louisiana sales tax online registration
To register for a Louisiana seller’s permit online, you must submit specific information regarding your business through the Louisiana geauxBiz.
The geauxBiz will ask you to provide company and personal details and estimates of your future sales.
There is no cost to register for a seller’s permit in Louisiana, but other business registration fees may apply.
Please contact the 1stopVAT team for help if you need it with registration or anything else relating to the sales tax rate Louisiana.
Louisiana Taxable Items and Services
Finding out which goods and services are taxed or exempt is necessary before calculating how much is the sales tax in Louisiana.
State law exempts certain items from sales tax Louisiana, such as most non-prepared food products, food stamp purchases, and prescription medicines are examples.
State law also exempts healthcare, manufacturers, and software from the Louisiana state sales tax rate.
Tangible personal property includes material items such as machinery and equipment, tools, furniture and fixtures, and other items used in business activity.
Businesses in Louisiana must pay Louisiana sales tax rates on tangible personal property.
What is the current sales tax in Louisiana?
According to the Louisiana Department of Revenue, the Louisiana state sales tax rate is 4.45%.
On top of that, there are one or more local sales taxes and one or more special district taxes ranging from 0% to 7%, putting the total Louisiana sales tax percentage at 4.45% to 11.45%.
Louisiana Tax Frequency
You are in charge of transferring tax revenue from customers to tax authorities once you have registered with the Louisiana DOR and begun collecting sales tax rates Louisiana.
The Louisiana Department of Revenue will assign your company a filing frequency.
You will either be assigned a monthly, quarterly, or yearly frequency. The frequency depends on the quantity or volume of your company’s sales.
For example, more prominent companies must file more frequently.
Both the sales and use tax Louisiana have filing requirements.
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