How do I use Louisiana Sales and Use Tax Commission Information for Remote Sellers?

• In order to honor the 8.45% flat rate, a rate override rule would need to be created for Louisiana.
  • For information on creating custom tax rules in your AvaTax account, please review Add or Import Custom Tax Rules
    • Please have an Admin User log into AvaTax and navigate to your account's custom tax rules.
    • Download and save the Louisiana custom rule template: Rules-LA-Flat845.xls 
    • Open the file and adjust the start date to align with the date you began participating as a remote seller.
    • Click Import tax rules and browse and upload or drag and drop the Louisiana custom rule template that you previously saved.
• Next, because the combined remote sellers rate is applied at the state level only and local jurisdictions are not individually calculated, the nexus selections in your AvaTax account need:
  • All Louisiana local jurisdictions deselected
    • For steps on how to adjust nexus jurisdictions, please review Tell Us Where You Collect and Remit Tax
• Lastly, if any transactions were created prior to implementing these changes, they will need to be recalculated on.
  • This will update the state rate to 8.45% and remove any localities that previously were used in calculation.
    • Please note this may change the amount of tax that was originally calculated on the transaction
  • To recalculate on an individual transaction
    • In AvaTax Update, go to the Transactions tab, search for your transactions, and click on the DocCode
    • Click on the transaction
    • Click Calculate Tax (in the middle)
    • Click Save
    • Select an Adjustment Reason
    • Click Yes, save and commit changes
  • To recalculate on several transactions at once using the transaction import
    • Review the import guidelines found here.
      • Use process code 4 to adjust a transaction that was already created and to allow AvaTax to calculate the new tax amount
    • Import your new file by going to Transactions > Import Transactions.

Once the above changes have been made, please add the LA R1031 Direct Marketer Sales Tax Return to your scheduled returns. 

• You will need:
  • Filing frequency
  • Your Louisiana registration number/account number
  • Your company EIN/FEIN
  • Effective Date for the first period you would like the form filed on

If you have not yet registered, please contact the Louisiana Department of Revenue for more information.

• This program requires an application to be submitted and approved by the Louisiana Department of Revenue before utilizing its benefits.
• You can also review specific information at the Louisiana website Louisiana Sales and Use Tax Commission for Remote Sellers.