Remote Sellers Required to Collect Louisiana Sales and Use Tax in 2019

The new decision from Wayfair has prompted Louisiana to require the collection of sales and use tax from certain remote sellers effective January 1, 2019.  Wayfair has removed the previous requirement that a company or vender be physically located in a state to be subject to the respective sales and use tax within the state.

Sellers who have a gross revenue of more than $100,000 from products or services delivered into the state or 200 or more transactions of products or services delivered into the state must collect and remit sales and use tax. The Louisiana Sales and Use Tax Commission for Remote Sellers will now serve to administer and collect tax on remote sellers in the wake of Wayfair. Fortunately, the Commission has told tax collectors that Wayfair should not be applied retroactively.

To register to remit sales and use taxes in Louisiana you will need to file Form R-16019 to apply for a Louisiana Tax Number (CR-1) Instructions on filing this form can be found here. A qualified tax attorney can assist with the execution of the application and potential questions or concerns that may arise in the process.

Jeanette Moffa is an attorney who concentrates on state and local taxes at Moffa, Sutton, & Donnini, P.A. She is also an adjunct professor and assistant editor to the American Bar Association’s The Sales and Use Tax Deskbook. For more information please call us at 888-966-8216.