Beginning July 1, 2020, the Louisiana Sales and Use Tax Commission for Remote Sellers (Commission) will be required to enforce collections of Louisiana state and local sales/use taxes by qualifying “remote sellers” and “marketplace facilitators.”
As a follow-up to our recent Jones Walker SALT webinar on this topic, the following is a list of action items and relevant dates/deadlines for various remote sellers and marketplace facilitators after the Commission’s July 1 enforcement implementation date:
- On or before July 1, 2020, remote sellers and marketplace facilitators must review their Louisiana-sourced sales transactions and determine whether the relevant economic nexus thresholds have been met (either $100,000 in total gross sales into the state or 200 separate sales transactions into the state in the prior calendar year or within the current calendar year).
- Those remote sellers and marketplace facilitators who are not already registered with the Louisiana Department of Revenue (LDR) as a “Direct Marketer” and who have economic nexus as of July 1 must register with the Commission by July 31, 2020, and must begin collecting state and local sales/use taxes (at applicable local rates) by September 1, 2020. We expect the Commission to provide a list of the applicable local rates on its website for use by remote sellers and marketplace facilitators in the near future.
- Remote sellers and marketplace facilitators who are already registered with the LDR as Direct Marketers and who meet the economic nexus thresholds will be automatically registered with the Commission (moving away from Direct Marketer return) and will also have until September 1, 2020, to begin collecting state and local sales/use taxes (at applicable local rates).
- Remote sellers and marketplace facilitators (including those already registered as Direct Marketers) who did not reach the economic nexus thresholds last year and have not yet reached the thresholds in the current year as of July 1, 2020, will be required to register with the Commission within 30 days of the date in which they actually surpass one of the economic thresholds, and will have 60 days from surpassing that economic nexus threshold to begin collecting state and local sales/use taxes (at applicable local rates).
- Additionally, any remote seller who has not reached either of the economic nexus thresholds and is not otherwise required to collect and remit sales/use taxes as a “dealer” in Louisiana will still have to comply with the state’s separate notice and information reporting requirements set forth in La. R.S. 47:309.1 if the remote seller has more than $50,000 in sales per calendar year.
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By Andre Burvant and Mathew A. Mantle
June 29 ,2020