Florida sales tax guide

Florida state sales tax in short

A sales tax (in some countries outside the US called the VAT) is a tax charged at the time of purchase of goods or services and paid to the local tax authority. Sales tax in Florida (FL) is supervised by Florida Department of Revenue (DOR). Sales tax is collected from the purchaser and falls on the end-consumer.

Whenever a business establishes a nexus in Florida, it is considered responsible for collecting the right amount of sales tax and submitting it to Florida Department of Revenue. The total sales tax rates Florida based businesses must charge vary based on the local rate range, which is the additional sales tax rate in the buyer’s location. In addition to the sales tax, Florida, like other US states, has also established transaction taxes called the sellers and consumer use tax, respectively. The seller use tax has to be collected by Florida sales tax exempt businesses.

Do you have to register to become the collector of sales tax for Florida?

Businesses must collect the correct Florida sales tax percentage if they meet the following criteria:

• It is selling taxable services or goods to Florida residents;
• It is selling taxable services or goods to Florida residents;
• Company’s clients are required to pay sales tax.

Meeting all of the criteria is considered a strong tie with the state – a nexus, which implies that the company must collect, file, and remit sales tax Florida.

Find out if you have a nexus required to collect Florida sales and use tax

Here are the types of nexus – ties with the state, enabling you to become a sales tax collector in Florida:

• If your business is located in Florida, you should start collecting Florida tax sales. This is called the physical nexus;
• Economic nexus for remote sellers. If in the last 12 months you have sold USD 100 000 worth of goods or services to Florida-based customers, you must start collecting the correct Florida sales tax rates from your purchasers;
• If you collaborate with businesses or affiliates in the state, you might have an Affiliate nexus. A good example of affiliate nexus is selling your services or goods via a remote retailer in Florida;
• If you store your goods for sale in warehouses in Florida, including the use Amazon owned storage facilities, you have an inventory in the state nexus and have to collect the right Florida sales tax rate;
• In some states, participating at trade shows for a long enough period creates a nexus. In case of Florida, you only establish a nexus if you sell personal property or services on the grounds of the exhibition.

Are you selling taxable goods and services?

If your business is selling physical property, you have to charge the right sales tax rate in Florida from your customers. However, some items, such as groceries or prescription medicine are sales and use tax Florida exempt. When it comes to services or digital goods, businesses are generally not required to collect sales tax, unless they are selling pre-written software.

Florida sales tax registration

Florida Department of Revenue (DOR) is the institution, responsible for sales tax administration in Florida. Using its website, you can find the most recent information about what is the sales tax rate in Florida and how to file it. You can register for a seller‘s permit by visiting the DOR‘s website or one of their field offices. To complete the registration, you will have to provide such details like federal employer identification number, owner‘s security number and other information. 

Collecting and filing the sales tax

Companies can file the sales tax, monthly, every quarter, twice a year or yearly. Florida sales tax returns and payments are due on the 1st and late after the 20th day of the month following each reporting period. Tax returns must filed even when no sales tax is due.

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