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

 Note: Find the equivalent version of this article for Admin Console here.

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 the Admin Console and go to Settings Manage advanced company settings > Manage custom tax rules > Import your tax rule.
      • 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.
      • 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:
  • 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.

 

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.