How can a dealer get a credit or refund of sales tax paid (advance sales tax) on purchases of items that were resold?
Effective January 1, 2009, the provisions for paying sales tax on purchases for resale was repealed. Dealers that purchase items for resale should provide the seller with a valid Louisiana resale exemption certificate Form R-1042 and not pay sales tax on these purchases. The advance sales tax credit line 12 will be removed from the sales tax return effective July 2009. After the credit line is removed, dealers will be required to obtain a refund of the sales tax paid on resale purchases from the seller. For more information about the repeal of the advance sales tax provision, please see the Advance Sales Tax Repeal page on the LDR web site.
Related Questions
- As a dealer registered to collect and remit Jefferson Parish sales tax, am I allowed a credit or refund on advance local taxes that I pay on purchases for resale?
- A qualified individual purchases a replacement sofa for $4000. Can she get a refund of the Tennessee sales tax paid on the first $3,200?
- How can a dealer get a credit or refund of sales tax paid (advance sales tax) on purchases of items that were resold?
