Louisiana ~ Sales and Use Tax: Remote Retailers Must Provide Use Tax Notice to Louisiana Purchasers

Effective July 1, 2017, a remote retailer, as defined, must begin notifying Louisiana purchasers, at the time of sale, that (1) a purchase is subject to Louisiana use tax unless it is specifically exempt and (2) there is no specific exemption for purchases made over the Internet, by catalog, or by other remote means.

The sale notice must also include a statement that Louisiana law requires that use tax liability be paid annually on the individual income tax return or through other means as may be required by administrative rule.

Louisiana Sales Exceeding $50,000 Per Calendar Year

” Remote retailer” means a retailer that purposefully avails itself of the benefits of an economic market in Louisiana or who has any other minimum contacts with the state and who (1)) is not required by law to register as a dealer or to collect Louisiana sales or use tax, (2) makes retail sales of tangible personal property or taxable services in Louisiana and the cumulative annual gross receipts of the retailer and its affiliates from those Louisiana sales exceed $50,000 per calendar year, and (3) does not collect and remit Louisiana sales and use tax on retail sales in the state.

Annual Notice to Louisiana Purchasers

By January 31st of each year, a remote retailer must send to each Louisiana purchaser an annual notice containing the total amount paid by the purchaser to the retailer for property or taxable services in the preceding calendar year.

The annual notice shall list the dates and amounts of purchases if available, state whether the property or service is exempt from tax if known by the retailer, disclose the name of the retailer, and state that Louisiana use tax may be due.

The notification shall be sent by first class mail, certified mail, or electronically at the purchaser’s choice and shall not be included with any other shipment or mailing from the retailer. Further, the envelope containing the annual notice shall include the words “IMPORTANT TAX DOCUMENT ENCLOSED”.

Annual Statement to Department of Revenue

By March 1st of each year, a remote retailer must file with the Department of Revenue an annual statement for each Louisiana purchaser which includes the total amount paid by the purchaser to that retailer for property or taxable services in the preceding calendar year. The statement shall not contain detail as to the specific property or services purchased.

The secretary may require the electronic filing of statements by a remote retailer who had sales in Louisiana in excess of $100,000 in the preceding calendar year.

Act 569 (H.B. 1121), Laws 2016, effective July 1, 2017

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