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About Florida's Sales & Use Tax: Do I need to Collect Sales
Tax or Not?
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WHAT IS TAXABLE?
SALES TAX:
Florida's sales tax law intends that each sale, admission
charge, storage, or rental is taxable unless such transaction is specifically
exempt.
USE AND CONSUMPTION:
If a product is purchased out of state but "used" in Florida, sales
tax is due on that product when the tax rate paid on it was less than
6%. If you purchase a product that you plan to sell at retail, but
end up using at your place of business, the "use" of that product is
subject to sales tax. If you purchase materials that are "consumed" in
a manufacturing process to create your end product but are not part
of the end product, those materials are subject to sales tax.
Find out if your business activity or product use and consumption is subject
to sales tax. Before any person is granted a license from any governmental
agency or can open a business in Florida, he or she must first find out whether
the business activity will be subject to sales tax.
EXAMPLES:
The following are examples of business activities, product
use, and consumption requiring the collection of sales tax.
 Sales
of taxable items at retail;
Repairs
or alterations of tangible personal property;
Rental
or lease of real property (e.g. commercial office space,
mini warehouse, short term living accommodations);
Rental
or lease of personal property (e.g. vehicles, machinery,
equipment or other goods);
Charges
for admission to any place of amusement, sport or recreation;
Selling
or providing telecommunication services;
Operating
private membership clubs which provide recreational or
physical fitness facilities;
Manufacturing
or producing goods for sale;
Importing
goods from any state or foreign county, for sale or use;
Selling
service warranty contracts;
Using
mail-order products on which no sales tax was charges;
Operating
vending or amusement machines;
Providing
taxable services (for example, investigative and crime
protection services, interior nonresidential cleaning and
nonresidential pest control services).
HOW TO REGISTER:
To register your business for collecting sales
tax, fill out an Application for Registration, Sales & Use
Tax (form DR-1). This form, as well as a registration
handbook are available from your local Department of
Revenue (DOR)
Service Center or by calling Taxpayer Assistance,1-800-352-3671(
in Florida only). There is a $5 registration
fee for in state
dealers.
WHEN TO COLLECT:
You collect sales tax from the purchaser at the time of
sale. The rate is 6% plus any county imposed taxes. Call
your local DOR Service Center or Taxpayer Assistance for
specific rates. Sales tax must be separately stated on your
sales slips or any other evidence of sales or rental.
HOW TO FILE:
You remit sales and use tax to the Florida Department
of revenue with a Sales & Use Tax Return (from
DR-15), available from your local DOR Service Center
or by calling Taxpayer
Assistance.
WHEN TAX IS DUE:
Returns and payments are due on the 1st and late after
the 20th day of the month following the date of sale. For
example, if the sale takes place on the 1st of one month,
then tax is not due until the 1st of next month.
Returns and payments postmarked after the 20th are late. However, if the
20th falls on a Saturday, Sunday, or federal or state holiday, they will
not be considered late if they are postmarked on the first working day following
the 20th.
If you pay more than $50,000 in sales and use tax between July 1 and June
30 (the state fiscal year), you will receive instructions to begin using
Electronic Funds Transfer (EFT). EFT payments must be transmitted no later
than 3:45 p.m. ET on the banking business day prior to the 20th.
PENALTY AND INTEREST:
If returns and payments are not postmarked on or before
the 20th, a late penalty is assessed at 10% of the amount
of tax owed per month, not to exceed 50%. Interest is assessed
on unpaid tax at 1% per month, prorated at .000328767 per
day. A minimum $20 penalty is assessed a late filed returns,
even if no tax is due.
WHO IS EXEMPT:
Federal, state, county and city governments, and qualified
nonprofit organizations, such as religious, charitable, scientific,
educational or veteran organizations, are exempt.
If you believe your organization may qualify for exemption, you must complete
and submit an Application for Consumer's Certificate of Exemption (form DR-5).
Form s are available from your local DOR Service Center at Florida Department
of Revenue, State Sales Tax Office, Interstate Corporate Center, 6302 Dr.
Martin Luther King Jr. Blvd, Suite 100, Tampa (813) 744-6325.
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