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ACTION NEEDED: Louisiana Remote Sellers May Have New Economic Threshold

Overview

On July 1, 2020, Louisiana’s economic nexus law went into effect, and with it, changes for some customers filing and remitting in the state.

Beginning July 1, 2020, Louisiana is moving some taxpayers to a new remote seller sales tax collection and reporting requirement. If your business exceeds Louisiana's economic nexus thresholds of either $100,000 of gross sales revenue, or 200 separate transactions into Louisiana, your business may now be required to collect sales tax at the specific state and local sales tax use rates. The Louisiana Department of Revenue has been notifying taxpayers impacted by this change with instructions on how to complete registration with the tax commission. If you are uncertain whether you meet economic nexus thresholds in Louisiana, please contact the state to confirm your status and reporting requirement.

If you do meet the remote seller sales tax collection and reporting requirements imposed by Louisiana, you’ll need to follow the steps below.

See Louisiana Sales and Use Tax on Remote Sales Frequently Asked Questions for more information.

If you are a qualified LA remote seller, you can go to the LA Remote Sellers filing portal: https://remotesellersfiling.louisiana.gov/

Environment

Managed Returns

Resolution

  • If you meet the Louisiana remote seller sales tax collection and reporting requirements that began on July 1, 2020, follow these steps:
    1. In AvaTax, go to Settings > All AvaTax settings >Custom Rules, and click Manage. 
    2. In Custom rules, locate Flat 8.45% Louisiana State and click Details.
    3. Expire the tax rule for Flat 8.45% Louisiana State, effective 6/30/2020.
    4. In AvaTax, go to Settings > Where you collect tax
      1. In Where you collect tax, find Louisiana, and click on Details.
      2. At the top of the page, update the Tax Type to Sales tax only and click Add local collection authorities to add local taxing jurisdictions where you wish to collect sales tax.
      3. clipboard_e68a6466e1d3479aab2c4c4f1c53fc142.png
    5. If you have any transactions that did not calculate using the above steps, you can recalculate those transactions using these steps.
    6. Follow Louisiana state instructions to complete commission registration. The commission will provide a new registration ID.
    7. In AvaTax, go to Returns > All scheduled returns.
      1. Expire LAR1031 effective 6/30/2020.
      2. Add the new commission tax return, the LA RSSTR (Remote Sellers Sales Tax Return), effective 7/1/2020. 

NOTE: See Louisiana Sales and Use Tax on Remote Sales Frequently Asked Questions for more information on Louisiana and remote sellers.