Does Louisiana charge sales tax on services?
by January 29, 2024
Please note: This blog was originally published in 2022. It’s since been updated for accuracy and comprehensiveness.
The majority of U.S. states require merchants to charge sales tax on tangible personal property (TPP), otherwise known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services.
Here’s what merchants need to know about taxing services in the state of Louisiana.
Are services taxable in Louisiana?
Services in Louisiana are generally not taxable, with important exceptions:
- furnishing of sleeping rooms by hotels
- sale of admissions to places of amusement and to athletic and recreational events, and the furnishing of privileges of access to amusement, entertainment, athletic, or recreational facilities
- furnishing of storage or parking privileges by auto hotels and parking lots
- furnishing of printing and overprinting
- furnishing of laundry, cleaning, pressing, and dyeing services
- furnishing of cold storage space and the preparation of property for such storage
- furnishing of repairs to tangible personal property
- furnishing of telecommunications services
Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be subject to state sales tax. For an in-depth look at Louisiana sales tax, the Louisiana Department of Revenue has more details.
How to stay compliant with sales tax when you sell services
Managing all the moving parts of sales tax can be challenging. Are accounting services taxed? What about hair care or car maintenance? They may not be taxed in your state today, but sales tax laws change all the time. TaxJar makes it easier for you to stay current with it all, especially as you scale your business across states.
If you need to charge sales tax on services, TaxJar takes all of these state laws into account and makes your job simple. To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day trial today.
