How do I use Louisiana Sales and Use Tax Commission Information for Remote Sellers?
Overview
I would like to collect 8.45% in Louisiana as a remote seller filing on the Direct Marketer Sales Tax Return.
Environment
Avalara AvaTax
Resolution
Setting up AvaTax for accurate calculation
- 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 go to Settings > All AvaTax settings > Custom Rules > Manage.
- 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.
- For information on creating custom tax rules in your AvaTax account, please review Add or Import Custom Tax Rules
- 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
- All Louisiana local jurisdictions deselected
- 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.
- Review the import guidelines found here.
- This will update the state rate to 8.45% and remove any localities that previously were used in calculation.
If you are registered as a remote seller
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
You have not yet registered as a remote seller
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.