A Louisiana Resale Certificate is a document that allows a business in Louisiana to purchase goods and services tax-free from suppliers for the purpose of reselling them. In order to use one, the retailer must provide a Louisiana Resale Certificate to their vendor. 

Learn more about how the Louisiana Resale Certificate works, how to get one, and more.

Related: Guide to starting a business in Louisiana

How Does a Louisiana Resale Certificate Work?

When retailers purchase products to resell, they often don’t pay sales tax to the supplier on the purchase. The sales tax will still be paid, but instead of the retailer paying the state sales tax, the retailer charges sales tax to their customer on the final value of the merchandise.

For instance, when a seafood market in Louisiana purchases items like shrimp, crawfish, or oysters from local fishermen or seafood distributors to sell in their market, by having a resale certificate, the market owner won’t pay sales tax on these transactions. When a customer purchases seafood to make dinner at home, the state sales tax will be charged to the customer based on the full price of the items. Throughout the course of the business day, the seafood market will accumulate sales tax from all their transactions with customers, and typically, at the end of the month, the market owner will send these funds to the Louisiana Department of Revenue.

Note that the sales tax exemption is only intended for inventory that will be resold and is not intended for the tax-free purchase of items used in normal business operations, such as paper, pens, etc.

How to Get a Louisiana Resale Certificate

Before a business starts selling products or providing taxable services, it must first get a Louisiana Sales Tax License (sometimes called a seller’s permit) from the Louisiana Department of Revenue. Assuming the buyer’s Sales Tax License application was registered using a NAICS code that indicates the business sells tangible personal property, the Louisiana Department of Revenue will automatically issue the Resale Certificate.

Otherwise, you will apply online through the Louisiana Department of Revenue’s LaTAP system.

The following information will be needed to begin the application process:

• Account numbers for all locations
• Locations and mailing addresses for all business locations
• Current NAICS code
• A valid e-mail address
• If applicable, the last 2 years of resale inventory purchase amounts (for consolidated filers, purchase amounts should consist of the combined purchases of all members of the consolidation)

Louisiana Resale Certificate FAQs