Sales Tax Guide for Florida

What Is Taxable in Florida?

In Florida, most tangible personal property is subject to sales tax. However, specific items are exempt, such as prescription drugs, certain groceries, and some medical supplies.

If your business sells taxable goods or services, you need to collect and remit sales tax to the state. Additionally, businesses should verify if use taxes apply when purchasing products from out-of-state vendors.

Who Needs to Collect Sales Tax?

Businesses required to collect sales tax in Florida include:

• Retailers with a physical presence in Florida
• Out-of-state sellers that meet Florida’s economic nexus threshold
• Service providers, depending on the nature of the service

Florida enforces an economic nexus threshold of $100,000 in sales annually. If your business exceeds this threshold, even without a physical presence, you must register and collect sales tax. Failing to comply may result in penalties and back taxes, so utilizing doola’s Bookkeeping service is beneficial to ensure compliance.

How to Register for a Sales Tax Permit in Florida

Registering for a sales tax permit in Florida involves these steps:

1. Collect necessary documents, such as EIN, business license, and company details.
2. Submit an application through the Florida Department of Revenue website.
3. Wait for approval and receive your Sales Tax Certificate.
4. Begin collecting sales tax as required.

Collecting sales tax without a permit is illegal. Make sure to register before conducting taxable sales. To further ease this process, doola’s bookkeeping experts are available to assist you.

How to Calculate Sales Tax in Florida

Follow these steps to calculate sales tax correctly:

Step 1:
Identify the correct sales tax rate based on both your location and that of your customer.

Step 2:
Apply the correct rate to the sales price at the point of sale.

Step 3:
Maintain precise records of all taxable and non-taxable sales.

Sales tax returns in Florida can be filed monthly or quarterly depending on sales volume. Always keep track of due dates to avoid any late penalties.

Common Sales Tax Exemptions in Florida

Businesses and organizations in Florida can qualify for certain sales tax exemptions, including:

• Purchases for resale (a resale certificate is necessary)
• Sales to certain nonprofit organizations
• Specific agricultural and industrial purchases

To utilize an exemption, proper documentation is needed. Misusing exemption certificates can lead to audits and penalties.

Remote Seller and Marketplace Sales Tax Rules in Florida

Florida enforces particular rules for remote sellers and marketplaces such as Amazon, eBay, Shopify, and Etsy.

The economic nexus threshold stands at $100,000 in sales per year. Businesses surpassing this must observe Florida’s remote seller sales tax laws, ensuring proper registration and tax collection.

What Triggers a Sales Tax Audit

Triggers for a sales tax audit by the Florida Department of Revenue may include incorrect or missing sales tax filings, late payments, inconsistent sales reports, or misuse of exemption certificates.

To mitigate audit risks, ensure meticulous record-keeping of all sales and tax filings. Regular internal audits can also be beneficial to maintain compliance.

FAQs About Sales Tax in Florida

Here are some frequently asked questions about sales tax in Florida:

Are digital goods taxable in Florida? 

Some digital goods may be taxable, while others are not, based on state guidelines.

Do out-of-state businesses need to collect Florida sales tax? 

If your sales surpass the $100,000 economic nexus threshold, you are required to collect tax.

What occurs if sales tax is overcharged or undercharged? 

Adjustments may need to be made, either refunding customers or compensating the state for undercharges. Accurate record maintenance is vital.

Are services taxable in Florida? 

Florida taxes specific services, such as admissions and certain rental or repair services.

Stay Compliant With doola

Maintaining sales tax compliance is crucial for avoiding penalties. Stay informed and utilize effective tools to keep your business in good standing.

doola offers guidance and bookkeeping services to help your business remain compliant with Florida sales tax requirements, providing tax support and financial solutions.