State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Florida (FL)

FL Sales Tax - Name of Tax and General Application:

Florida imposes a tax on the privilege of engaging in the business of selling tangible personal property or sells anything taxable in the state. This tax is referred to as a

FL Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Florida imposes sales and use tax on all out-of-state dealers who are "doing business" in the state. Doing business in Florida entails maintaining retail establishments, soliciting business through agents or advertising, delivering tangible personal property for a sale, or using or storing tangible personal property physically located in the state.

FL Local Tax - Do Localities Impose Tax?

Yes, Florida imposes local sales tax.

FL Resale Certificate Renewal Agreements:

A resale certificate will allow the vendor to exempt tax on property or services sold that are bought with the intent to resell. The certificate must include the name and address of the purchaser, the registration number and effective date and the dealer's signature.

FL Resale Certificate Renewal Periods

Florida resale certificates must be renewed annually.

FL Statute of Limitations

Later of three years from the date the return was due, the date the tax was due, or the date the return was filed. Six years from the date of a substantial underpayment of tax or filing a substantially incorrect return.