One of the important things that you’re going to have to consider if you are starting or are running a business in Florida is whether you need to collect sales tax and how much you need to collect. The following are some of the things that you should know about Florida state sales tax as a business owner:
Determining a sales tax nexus
Having a sales tax nexus means that your business has a significant enough presence in the state that it must collect sales taxes. There are a number of different qualifications for having a sales tax nexus, including owning property in the state, having items for sale that are taxable, having employees in the state, manufacturing or producing goods for retail sale, importing goods from other states or countries at retail and more.
Determining what’s taxable
Once you’ve determined if you have a sales tax nexus, you’ll want to know whether what you’re selling is taxable. The general rule of thumb is that if you’re selling services in Florida – for example, if you are a wedding planner – then you don’t have to worry about sales taxes. However, if your service focuses on repairing or building products – for example, you repair or customize cars – then you will have to collect sales tax.
For the most part, any products that you sell will be taxable. There are a few exemptions, including some medicine, groceries, seeds and fertilizer, household remedies, prosthetic instruments and orthopedic instruments.
Collecting Florida sales tax
The first thing that you will need to do is to apply for a Florida sales tax permit. Without a permit, it’s illegal to collect sales tax in the state’s name. Additionally, there are a number of other things to keep in mind, including:
- If you ship a product to a different part of Florida, you’ll need to charge sales tax based on the rate of the address you shipped the product to.
- If you are selling through Amazon, then you need to set up your sales tax settings properly so that they are based on Florida’s tax system.
- You will need to charge sales tax on shipping charges in Florida.
When it comes to filing sales tax in Florida, they are always due by the 20th of the month after the reporting period. To take advantage of our accounting and tax planning services, contact us at Valezar & Associates in Florida today.