Who Needs a Louisiana Resale Certificate?
Any business that intends to purchase goods and resell them at retail needs to get a Louisiana resale certificate. Without one, the business would have to pay sales taxes to their vendors and suppliers for their inventory items.
Fortunately, the state does allow businesses to deduct any sales taxes paid for inventory items. However, you do need to keep accurate records and receipts to claim the deduction.
In addition, Louisiana is one of ten states that require out-of-state businesses to obtain a Louisiana resale certificate when they wish to purchase goods from vendors and suppliers in Louisiana they intend to resell at retail. So, if you have an out-of-state business and your vendor is in Louisiana, you, too, will need a Louisiana resale certificate to obtain tax-exempt status.
Do Louisiana Resale Certificates Expire?
As long as the business remains active, its Louisiana resale certificate does not expire. The business must report regular sales activity and remit sales taxes to the Louisiana Department of Revenue at least once every 12 months. When they do, the resale certificate is automatically renewed.