Louisiana: Online Shopping Isn’t Tax Free
- Dec 3, 2013 | Gail Cole
As holiday shoppers reach their stride, the Louisiana Department of Revenue reminds taxpayers that “’Online’ doesn’t mean ‘tax-free’.”
Whether it’s a pair of earrings on Etsi, kitchen knives from QVC, or a plaid shirt from the LL Bean catalog, the transfer of tangible personal property is subject to sales tax in Louisiana. If the seller is an out-of-state vendor not required to collect consumer use tax.
What it is
As explained by the Louisiana DOR:
“The Consumer Use Tax helps to protect Louisiana businesses from unfair competition with online retailers and other out-of-state vendors who don’t charge sales tax. And it helps to provide money for vital state services such as education, health care and public safety.”
How to pay it
Use tax may be submitted along with the Consumer Use Tax return to the Louisiana Department of Revenue. Alternatively, it may be reported on state individual income tax returns. The rate is 8%.
Consumer use tax applies to businesses as well as individuals. How does your business manage use tax?
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