How are sales sourced?
Sourcing generally refers to where a sale is deemed to take place.
Tangible personal property (TPP), digital products and services, are all generally sourced as follows:
- If received by the buyer at the seller's business location, the sale is sourced to that business location.
- If not received at the seller's business location, the sale is sourced to the location of receipt by the purchaser or purchaser’s designee.
- If the location of receipt by the purchaser (or designee) is unknown, the sale is sourced to the purchaser's address contained in the business records of the seller.
- If no address is available in the seller's business records, the sale is sourced to the purchaser's address obtained at the time of sale (e.g., the purchaser's payment instrument).
- If no address is obtained at the time of sale, then the sale is sourced to:
- For TPP - the location from which TPP was shipped
- For digital products - the address from which the digital product was first available for transmission by the seller
- For services - the address from which the service was provided.
Different rules apply for sourcing of leases of tangible personal property, vehicles, and telecommunication services. See La. R.S. 47:301.4(B)(3), (C) and (D).