Louisiana Resale Certificate: How to Get, Use, and Accept One
Louisiana Resale Certificate: How to Get, Use, and Accept One
TL;DR
Louisiana Form R-1064 documents a purchaser’s claim that goods bought for resale qualify for a sales tax exemption. The Louisiana Department of Revenue issues the form.
Form R-1064 is valid for one year from approval, previously three years. An out-of-state or multistate resale certificate does not replace it.
Buyers should obtain Form R-1064 from the department and use it only for qualifying resale purchases. If they use the inventory themselves, they may owe use tax.
Sellers should validate Form R-1064 online and check whether the claim applies to the transaction, including any local tax requirements.
A buyer who misuses the exemption may owe tax, and a seller who accepts defective documentation may face tax liability.
What a Louisiana resale certificate is and isn't
A Louisiana resale certificate supports a sales tax exemption when a business buys property to resell. The Louisiana Department of Revenue (LDR) issues Form R-1064 for that purpose. A business that buys property for its own use cannot treat the purchase as resale inventory, even if it also sells other goods.
Document | What it establishes | Resale use |
|---|---|---|
Form R-1064 | LDR has authorized the purchaser to claim the Louisiana resale exemption. | The purchaser uses it for qualifying resale purchases. |
Louisiana Sales Tax Registration Certificate | The business has a Louisiana sales tax registration. | Registration alone does not replace Form R-1064. |
Another state’s or a multistate certificate | The purchaser holds documentation issued or used outside Louisiana. | It does not replace Louisiana’s Form R-1064. |
Resale differs from exemptions for manufacturing, nonprofit, or agricultural purchases. Those exemptions depend on their own qualifications and documentation, not on whether the purchaser plans to sell the property.
Louisiana also administers state and local sales taxes separately. A state-issued Form R-1064 can support a local resale claim when it shows the buyer’s principal parish and local account number. For intra-parish dealer-to-dealer sales, the parish may require its own local exemption certificate instead of the state-issued R-1064.
Louisiana registration and documentation requirements
A business seeking a Louisiana resale exemption must register with the Louisiana Department of Revenue (LDR) before obtaining Form R-1064. LDR issues the form after the business applies. The application requires business and registration information, including a Location ID for a business that files consolidated returns. Buyers do not fill out and issue Form R-1064 themselves.
Form R-1064 remains valid for one year. LDR automatically renews it 60 days before expiration if the business remains current. Sellers can validate the form online through LDR. An out-of-state purchaser should not substitute another state’s resale certificate or a multistate certificate for Louisiana’s form.
Parish sales tax requires a separate check. A parish accepts a state-issued R-1064 when it shows the buyer’s principal parish and local account number, while an intra-parish dealer-to-dealer exception follows a separate rule. Buyers and sellers should check the parish information on the document before treating a sale as exempt from local tax.
Buyer steps: how to get and use a resale certificate
Confirm that the purchase is for resale. Louisiana dealers that buy and sell tangible personal property are eligible. Use the resale exemption for goods you will sell to customers, not for supplies, equipment, or other items your business will use.
Obtain your Louisiana certificate. The Louisiana Department of Revenue (LDR) issues Form R-1064 to eligible registered businesses. You do not fill out and issue the form yourself. Keep required sales activity filings and tax payments current so the certificate automatically renews. Another state’s resale certificate or a multistate certificate does not replace Form R-1064. Apply or renew through LaTAP. The application asks for LDR account numbers and physical and mailing addresses for all locations, a current NAICS code, a valid email address, and resale inventory purchase amounts for the last two years. Use a 10-digit LDR Account Number or an 11-digit Location ID; consolidated filers with multiple locations use their Location ID and combine purchase amounts across group members.
Give the seller the certificate for qualifying purchases. Provide your issued Form R-1064 when buying inventory for resale, and check its expiration date. The certificate lasts one year. LDR automatically renews it 60 days before expiration if your account is current. If it does not renew automatically, renew within 45 days of the expiration date. For a transaction involving local sales tax, make sure the documentation identifies your principal parish and local account number so the seller can assess the local exemption claim.
Account for inventory you use yourself. If your business takes an item out of resale inventory for its own use or consumption, the resale purchase no longer supports tax-free treatment for that item. Account for the applicable use tax rather than treating the item as a sale to a customer.
Seller steps: how to accept and verify a resale certificate
Get the certificate before treating the sale as exempt. Ask the buyer for Form R-1064, which the Louisiana Department of Revenue issues rather than the buyer fills out. Check that the certificate identifies the purchaser and covers the transaction. A sales tax registration certificate or a certificate from another state does not replace R-1064.
Validate the certificate online. Use LDR’s online validation service. Enter your own Louisiana account number and business name, plus the buyer’s Louisiana account number and business name. Save the result showing the buyer’s account number, business name, and expiration date with the sale record. Check the purchaser information and expiration date, and consider whether the goods are being bought for resale rather than for the buyer’s own use. A new registration may take about a week to appear in validation, so a missing result calls for follow-up rather than an assumption that the certificate is valid.
Check the local-tax claim separately. A state R-1064 can support a parish resale claim when it shows the buyer’s principal parish and local account number. For intra-parish dealer-to-dealer sales, the parish may require its own local exemption certificate instead of the state certificate.
Resolve defects before exempting the sale. If the certificate is incomplete, expired, or cannot be validated, ask for a corrected certificate or collect the applicable tax. Accepting defective documentation can leave the seller responsible for tax that was not collected.
Keep the supporting records. Retain the certificate, the online validation result, and the related invoices so you can show why you treated each sale as exempt. R-1064 remains valid for one year and renews automatically 60 days before expiration if the buyer’s account is current. Check the certificate’s status when a later sale relies on it.
Buyer vs. seller: quick comparison checklist
The Louisiana Department of Revenue issues Form R-1064. Use this checklist to separate the buyer’s duties from the seller’s checks.
Buyer | Seller |
|---|---|
Register. Register with LDR before requesting R-1064. | Identify. Match the purchaser to the business named on R-1064. |
Document. Obtain the LDR-issued R-1064. Do not substitute an out-of-state or multistate certificate. | Check. Request R-1064, not a sales tax registration certificate or another state’s form. |
Use or verify. Claim resale only for eligible purchases. Account for tax if you use the goods instead of reselling them. | Validate. Check R-1064 online before accepting the resale claim. |
Retain. Keep the authorization and purchase records. R-1064 lasts one year and renews automatically 60 days before expiration if the account remains current. | Retain. Keep R-1064, the validation result, and related invoices. |
Distinguish exemptions. Use the appropriate documentation for a non-resale exemption. | Distinguish exemptions. Do not accept a manufacturing or nonprofit exemption as proof of resale. |
Common mistakes and how tax review catches them
A tax review can find resale claims that lack valid documentation. Sellers may have an R-1064 on file without checking its validity online, or they may keep a certificate after it expires. A newly registered buyer may take up to one week to appear in online validation, so a seller should resolve an unsuccessful check before treating the sale as exempt. Keep the validation result with the related invoices.
Buyers can create a separate tax issue when they use tax-free resale inventory in their own business. For example, a furniture dealer that takes a chair from stock for its office needs to account for tax on that use rather than treat the chair as sold for resale.
Invoice-level calculation helps you apply the right tax rules to purchases and sales going forward, but it cannot validate a certificate or detect every internal use of inventory. Taxwire calculates tax using product category, delivery location, and jurisdiction rules. If a review finds unpaid tax from earlier periods, Taxwire can file prior-period returns and handle voluntary disclosure agreements.
FAQs
Can I use a Louisiana Sales Tax Registration Certificate instead of a resale certificate?
No. Registration identifies your business for sales tax purposes, while LDR-issued Form R-1064 documents its resale authorization.
Can an out-of-state buyer use another state’s resale certificate?
No. Louisiana does not accept another state’s certificate or a multistate certificate in place of its resale authorization.
Does Form R-1064 cover parish sales tax?
A seller can accept the state-issued R-1064 when it shows the buyer’s principal parish and local account number. For intra-parish dealer-to-dealer sales, the parish may require its own local exemption certificate instead.
How long does Form R-1064 remain valid?
Form R-1064 is valid for one year from approval, previously three years. It automatically renews 60 days before expiration if required sales activity and tax payments are current; otherwise, the buyer should renew within 45 days of the expiration date.
Why can’t a seller validate a newly registered buyer?
LDR’s online validation may take one week to recognize a new registration. The seller should resolve the missing validation before accepting the resale claim.
Sources
This guide provides general information, not tax advice. Confirm requirements with the Louisiana Department of Revenue and the relevant parish collector.