Florida Sales Tax: Rates, Registration, and Filing Requirements, Study Guides, Projects, Research of Business

Download Florida Sales Tax: Rates, Registration, and Filing Requirements and more Study Guides, Projects, Research Business in PDF only on Docsity! Florida Department of Revenue, Florida Sales and Use Tax, Page 1 Sales Tax Each sale, admission, purchase, storage, or rental in Florida is taxable, unless the transaction is exempt. Florida imposes a general state sales tax rate of 6% on sales and purchases of items, services, and transient rentals. However, other rates may apply such as: • 4% on amusement machine receipts • 5.5% on leases and licenses of commercial real property • 6.95% on electricity Discretionary Sales Surtax In addition to the state sales tax rate, many Florida counties have a discretionary sales surtax that applies to most transactions subject to sales and use tax. The county surtax rate applies to a taxable item or service delivered into a county imposing a surtax. The surtax rate for motor vehicles and mobile homes is determined by the home address of the purchaser. For certain transactions, only the first $5,000 of a taxable sale or purchase is subject to the discretionary sales surtax. Discretionary sales surtax rates vary by county. Counties may charge a rate between 0.5% and 2.5%; however, there are some counties that do not impose a surtax. The Discretionary Sales Surtax Information (Form DR-15DSS), updated yearly, provides the surtax rates for each Florida county. Transient Rental Taxes In addition to state sales and use tax and discretionary sales surtax, Florida law allows counties to impose local option transient rental taxes on rentals or leases of accommodations in hotels, motels, apartments, rooming houses, mobile home parks, RV parks, condominiums, or timeshare resorts for a term of six months or less. In many counties, the local transient rental taxes are reported and remitted directly to the local government. However, sales tax and discretionary sales surtax on transient rentals are always reported and remitted to the Florida Department of Revenue. The Local Option Transient Rental Tax Rates (Form DR-15TDT) provides the transient rental tax rate for each Florida county. Visit floridarevenue.com/taxes/rates to find the listing of all Florida transient rental rates. Proper Collection of Tax Collecting the right amount of tax is important because mistakes will cost you money. Florida’s general state sales tax rate is 6%. Additionally, most Florida counties also have a local option discretionary sales surtax. [State Sales and Use Tax Rate] + [Surtax Rate] = [Total Tax Rate] Dealers must calculate the total tax due by multiplying the taxable sale amount by the total tax rate to determine the amount of tax due. Dealers must calculate the total tax due on each sale. The tax must be shown separately on each invoice and may be calculated on either the combined taxable amount or the individual taxable amounts on an invoice. [Taxable Sale Amount] X [Total Tax Rate] = [Tax Due on Sale] The tax computation must be carried to the third decimal place and rounded up to the next whole cent when the third decimal place is greater than 4. Example: A customer purchases one taxable item and takes delivery in a county that does not impose a discretionary sales surtax. The dealer’s taxable selling price for the item is $50.45. To calculate the tax due, multiply the taxable selling price by the tax rate of 6% and carry to the third decimal place. $50.45 X 6% (or .06) = $3.027 Since the third decimal place is greater than 4, the tax due must be rounded up to the next whole cent. The total tax due on the sale is $3.03. Florida Sales and Use Tax GT-800013 R. 06/21 Florida Department of Revenue, Florida Sales and Use Tax, Page 2 Taxable Purchases - Use Tax Use tax is due on the use or consumption of taxable goods or services when Florida sales tax was not paid at the time of purchase. For example: • If you buy a taxable item in Florida and did not pay sales tax, you owe use tax. • If you buy an item tax exempt and intend to resell it, and then use the item in your business or for personal use, you owe use tax. • If you buy a taxable item outside Florida and bring it into (or have it delivered into) Florida, and you did not pay sales tax on the item, you owe use tax. Who Must Register to Collect Tax? If your business will sell taxable goods or services, you must register to collect, report, and remit sales and use tax before you begin conducting business in Florida. Each of your Florida business locations must be registered. Examples of business transactions subject to Florida sales and use tax are: • Sales of retail goods (new and used) • Sales of prepared food and meals • Sales of service warranties • Sales of certain services (e.g., detective or burglar protection, nonresidential cleaning, and nonresidential pest control) • Rental or lease of tangible personal property (e.g., vehicles, machinery, or other goods) • Repairs or alterations of items • Charges for admission to any place of amusement, sport, or recreation • Charges for renting, leasing, or licensing the use of real property (e.g., “commercial rental property” such as commercial office or retail space, self-storage units, or mini-warehouses) • Charges for renting, leasing, or licensing living, sleeping, or housekeeping accommodations for rental periods of six months or less (e.g., “transient rental accommodations” such as hotel and motel rooms, condominium units, timeshare resort units, beach or vacation houses, camp ground sites, or trailer or RV parks) • Operating membership clubs that provide recreational or physical fitness facilities • Operating vending machines or amusement machines How Do I Register to Collect Sales Tax? You can register to collect, report, and pay sales tax and discretionary sales surtax online at floridarevenue.com/taxes/registration. The online system will guide you through a series of questions to help determine your tax obligations. If you do not have internet access, you can complete a paper Florida Business Tax Application (Form DR-1). As a registered sales and use tax dealer, a Certificate of Registration (Form DR-11) and a Florida Annual Resale Certificate for Sales Tax (Form DR-13) will be mailed to you. Paper tax returns will be mailed to you unless you are filing electronically. The Certificate of Registration must be displayed in a clearly visible place at your business location. The Florida Annual Resale Certificate for Sales Tax is used for tax-exempt purchases you intend to resell. If the goods bought for resale are later used (not resold), you must report and pay use tax and surtax on those items. Florida law provides for criminal and civil penalties for fraudulent use of a Florida Annual Resale Certificate for Sales Tax. Filing and Paying Tax You can file returns and pay sales and use tax, plus any applicable discretionary sales surtax, using the Department’s online file and pay website at floridarevenue.com/taxes/filepay or you may purchase software from a software vendor. A list of software vendors is available at floridarevenue.com/taxes/eservices. Returns and payments are due on the 1st and late after the 20th day of the month following each reporting period, whether you are filing monthly, quarterly, twice a year, or yearly. If the 20th falls on a Saturday, Sunday, or state or federal holiday: • returns are timely if they are filed electronically (without payment), postmarked, or delivered in person on the first business day after the 20th • payments are timely if they are postmarked or delivered in person on the first business day after the 20th Florida law requires you to file a tax return even when NO sales and use tax is due.