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US Louisiana taxes foreign sellers

  • Jul 2, 2020 | Richard Asquith

Louisiana has become the latest U.S. state to impose sales tax collections obligations on foreign (remote or out-of-state) sellers.

From 1 July 2020, non-resident sellers from around the world are obliged to register with the Louisiana Sales and Use Tax Commission if they pass the local sales thresholds:

  • Gross revenue of more than $100,000
  • 200 or more sales in Louisiana in the current or previous calendar year

This is based on the Economic Nexus rules, established in the South Dakota vs Wayfair 2018 Supreme Court Ruling. This brought in sellers into the sales tax net even if they had no physical represent or nexus in the state – the old rules.

The new rules also bring in marketplace facilitators. They too are liable to collect sales taxes on behalf of their sellers if their turnover (including their remote sellers incomes on the platform) exceeds either of the above two thresholds.

The current sales tax rate in Louisiana is 4.5%.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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