When starting a business in Louisiana, you must register for several things. Perhaps one of the most common is the Louisiana sales tax license, sometimes referred to as a retailer certificate, seller’s permit, sales tax permit, sales and use tax number or sales tax registration.
The Louisiana sales tax license is obtained through the Louisiana Department of Revenue when applying for a Louisiana Revenue Account Number.
Keep reading this guide to learn who needs a sales tax permit, what kinds of products and services are taxable, how to register, and what to do for reporting.
Related: Louisiana Startup Checklist
Who needs a sales tax license in Louisiana?
A business must register for a sales tax license in Louisiana when:
- A business has sales tax nexus. Nexus means having a physical presence in the state, such as having a physical location like a retail store or office or using a warehouse or fulfillment center to store inventory.
- Occasionally selling items at craft shows, fairs, seminars, conventions, etc. in Louisiana.
- Hiring Louisiana employees (including remote employees, sales representatives, or agents).
- An online business located in Louisiana is selling taxable products to Louisiana residents.
- A remote seller sells over $100,000 in physical goods or has over 200 transactions annually to residents in Louisiana.
What products and services are taxable in Louisiana?
Physical Products
There are a few exceptions, but almost all physical products are taxable when sold at retail in Louisiana. Common examples include:
- General merchandise like furniture, appliances, and clothing
- Titled or registered items like vehicles
Some food items, prescriptions, and articles traded in for new items are generally tax-exempt. The Louisiana Department of Revenue has a full list of tax-exempt items in Louisiana.
Digital Products
Digital products are taxable in Louisiana.
Services
Most services aren’t taxable in Louisiana, however, there are a few exceptions, some of which include:
- Short-term lodging
- Admission or access to amusement, entertainment, recreational or athletic facilities or events
- Printing services
- Laundry, cleaning, pressing, and dyeing services
- Repairing tangible personal property like a cell phone repair shop fixing a cracked screen
How to register for a sales tax license in Louisiana
A sales tax license can be obtained by registering for an Application for Revenue Tax Number (CR-1 Form) through GeauxBiz.
Information needed to register includes:
- Legal Business Name
- Trade name or Doing Business As
- Business Address
- Type of business entity: sole proprietorship, general partnership, corporation, Limited Liability Company (LLC)
- Louisiana Charter Number (if the entity was registered with the Louisiana Secretary of State.
- North American Industry Classification System (NAICS code)
- Employer Identification Number (EIN) from the IRS or owner’s Social Security Number if a sole proprietorship with no employees
- Names and addresses of owners/officers/members
- Date business activities began or will begin
Sales tax reporting
How is sales tax collected?
When a business sells a taxable product or service, it charges the appropriate sales tax rate to the customer. The business collects this tax, which it then sends to the Louisiana Department of Revenue.
Businesses collecting less than $5,000 annually may file by mail, but over $5,000 will file electronically.
How much is sales tax in Louisiana?
The sales tax rate that is charged varies depending on the business address, whether the purchase is made or shipped from a business located in the state, or where the transaction took place, such as a fair or tradeshow.
In addition to the statewide tax, additional local sales taxes may be added. To find the sales tax for your location, see the list of local sales and use tax rates from the Louisiana Association of Tax Administrators.
When are Louisiana sales tax returns due?
The Louisiana Department of Revenue will determine a filing frequency based on the expected annual sales volume, which will be monthly, quarterly, or semi-monthly. Generally, a business selling over $500 monthly in taxable sales will file monthly.
Filings are due on the 20th day of the month following the reporting period unless the 20th falls on a weekend or federal holiday, which would move to the next business day.
A filing indicating no sales is still required even if the business had no sales during the reporting period.
Louisiana Sales Tax License FAQs
How much does a Louisiana sales tax license cost?
There is no cost for a sales tax license in Louisiana.
How long does it take to get a Louisiana sales tax license?
Expect 3-4 weeks to receive a sales tax license in Louisiana.
Do you have to renew a Louisiana sales tax license?
The sales tax permit is a one-time registration, and no renewals are needed. Be mindful that if any information about the business changes, such as the mailing address, additional locations, or change in ownership, those changes need to be updated with the Louisiana Department of Revenue.
Is a business license the same thing as a sales tax license?
No – A business license and a sales tax permit serve different purposes and are not the same.
A business license authorizes you to conduct business within a particular locality, ensuring compliance with local regulations. Conversely, a sales tax permit enables your business to legally collect sales tax on sales, which you then remit to the state government.
Generally, businesses require both a license and a permit to operate legally and handle taxes correctly.
How do I get a wholesale license in Louisiana?
A business can purchase items to resell without paying state sales tax. The tax liability is passed from the wholesaler or distributor to the retailer, who will then charge sales tax to the end-user of the item.
Wholesalers and distributors will require a Louisiana Resale Certificate (also referred to as a wholesale license, reseller’s permit, or sales tax exemption certificate) to document that the items being purchased are for resale.
If you have questions about the sales tax license and regulations, the Louisiana Department of Revenue has a helpful guide or can be contacted by calling or visiting:
Baton Rouge Office
617 North Third Street
Baton Rouge, LA 70802
855.307.3893
New Orleans Office
1450 Poydras St. Suite 800
New Orleans, LA 70112
855.307.3893