Louisiana imposes various requirements on purchasers doing business in Louisiana. We recommend that you go through the items below to help you with the most frequently asked questions concerning purchasers and sales and use tax issues.

Tax exemption certificates. An exemption certificate may be issued by a purchaser of a nontaxable item. The exemption certificate may be based on the type of transaction (such as a resale exemption) or on the item itself.

Resale exemptions. Although wholesale sales are exempt from tax, wholesalers are required to collect advance sales taxes from dealers (you the purchaser) to facilitate collection of the tax at the retail level. Wholesalers include manufacturers, jobbers, and suppliers selling to anyone for sale at retail. Basically, if you are a purchaser that will be selling the majority of your goods at retail, you will have to pay your wholesaler the sales tax. As a retail dealer who has made advance payments of sales tax to wholesalers you can then deduct the payments from the total tax collected by them when the items are sold at retail.

Resale exemption certificate. If you are a retailer, you are not able to use the resale exemption.

Blanket resale certificates. A blanket resale certificate is a resale certificate that you provide to a seller from whom you make numerous exempt resale purchases. The idea is that by providing a blanket resale certificate, both you and the seller can avoid the hassle of having to deal with a new certificate every time you make a purchase. In Louisiana only wholesale sales are exempt from tax. Wholesalers are required to collect advance sales taxes from dealers (you, the purchaser) to facilitate collection of the tax at the retail level. Wholesalers include manufacturers, jobbers, and suppliers selling to anyone for sale at retail. Louisiana has many specific exemption certificates that may be obtained from the Department of Revenue and Taxation, Taxpayer Assistance Section.

Purchases from out-of-state vendors. In Louisiana, you are generally allowed a credit for sales or use tax paid in another state for tangible personal property used in Louisiana. The amount of the credit may not exceed the amount of the Louisiana tax.