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The Louisiana Department of Revenue recently updated its Sales and Use Tax on Digital Products and Related Services guidance document to clarify what constitutes digital audiovisual works, things that do not constitute website hosting, and what constitutes communication and collaboration tools. The guidance document was originally published in August to clarify some of the sales tax changes made during the Third Extraordinary Session of the Louisiana Legislature in 2024 affecting digital products and related services, which were effective January 1, 2025.
The update adds an illustrative example of the types of digital audiovisual work that would be subject to sales and use tax. "A company operates a website that allows customers to purchase and view prerecorded music concerts. The prerecorded music concerts are digital audiovisual works and are subject to sales and use tax."
The update also explains that web hosting services refer to the providing of storage for website files, domain name connections to make the site publicly accessible, and management of email addresses. However, web hosting does not refer to website building or design. Finally, the update explains that digital communication and collaboration tools such as software applications and platforms that allow a group of people to work together remotely over the internet, such as Microsoft Teams and Zoom, are examples of non-exempt digital tools.
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