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

Note: Switch to the AvaTax Update version of this article.

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 Organization > Custom Tax Rules > Import.
      • Download and save this 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 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
  • 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 the Admin Console, go to the Transactions tab, search for your transactions, and click on the DocCode
      • Click Edit
      • Click Calculate Tax (at left)
      • Select an Adjustment Reason to the right of the Details tab
      • Click Save as Committed
    • To recalculate on several transaction 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 Tools Import

 

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 filing calendars

  • 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.

 

 

 

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