Quick Answer: You need to get a sales tax permit in Florida if you have physical presence or meet economic nexus requirements. Florida also maintains a list of additional activities that can trigger nexus. More information is included below.
Confused about Nexus? Not sure if you need a sales tax permit in Florida?
If you’re running a business in Florida and aren’t sure about your sales tax liability in the state, this article will help you understand what constitutes sales tax nexus in Florida and walk you through how to get a permit (if you need one).
What is Sales Tax Nexus Anyway?
Your business owes sales tax in any state where it has “sales tax nexus.” In short, if you have sales tax nexus you need to collect and remit sales tax. If you don’t have sales tax nexus, you generally don’t need to get a permit.
Sales tax nexus is a legal term that means you have crossed a threshold and now have a sales tax collection responsibility in the state. Nexus can be created by having a physical presence, an economic presence, or other factors. Nexus rules vary by state and retailers have specific nexus rules based on where they have people, property, or inventory.
What Should You Do Once You Determine You Have Sales Tax Nexus?
Once you determine that you have sales tax nexus in Florida, your next step is to register for a sales tax permit in the state. Check out our blog post on how to get a sales tax permit in Florida for more information about that process. If you are not interested in doing the work of getting the permit yourself, TaxValet can handle the permit registration for you with our Sales Tax Permit Registration Service.
Common Ways to Have Sales Tax Nexus in Florida
1. Economic nexus in Florida
As of July 1st, 2021, Florida has an economic nexus statute in place. If you make over $100,000 in retail taxable sales (excluding marketplace sales) in the previous calendar year, you need to get a sales tax permit. You can see each state’s economic nexus threshold in our free online chart here.
2. Activities in Florida
If you have any of the following activities in Florida, you have sales tax nexus in the state regardless of the dollar value of your sales into Florida:
- Ownership of real or personal property
- Repairs or alterations of tangible personal property
- Rentals, leases, or licenses to use real property
- Rentals of short-term living accommodations
- Rental or lease of personal property
- Manufacturing or producing goods for sale at retail
- Importing goods from any state or foreign country, for sale at retail, for use in the business, or for pleasure.
3. Physical presence in Florida
The following creates a physical presence nexus in Florida. If you have any of the following in Florida, you will need to get a sales tax permit:
- Employees, agents, or independent contractors conducting sales or other business activities in Florida.
- Maintain an office or other place of business in Florida.
- Assemble, install, service, or repair products in Florida.
- Own, rent, or lease real property or tangible personal property in Florida.
- Deliver goods to Florida customers using your company-owned or leased truck.
You can read more about Florida nexus at the Florida Department of Revenue.
If you need help determining which states you have a physical presence in, check out our Sales Tax Starter Kit service.
Do You Need a Sales Tax Permit in Florida If You Only Sell on Marketplaces?
Florida is not a marketplace collection state. Amazon, eBay, and other marketplaces are NOT required to collect or pay sales tax in Florida. Therefore, you, as the seller are responsible for collecting and remitting sales tax due on sales into Florida if you are required to register for a sales tax permit.
Sales tax laws are inherently confusing and seem to always be changing. For busy entrepreneurs, keeping up with the complexities of nexus and the concern over potential audits is a headache. That’s why TaxValet offers comprehensive sales tax services. From navigating Nexus to addressing audits, our team of experts can take the hassle of sales tax off your hands. If you’re ready to never think about sales tax again, get started for free by scheduling a call with one of our sales tax experts today.