Do You Need to Get a Sales Tax Permit in Florida?
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.
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 by 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
Florida does not currently have an economic nexus threshold. However, House Bill 159 would adopt a threshold of $100,000 or 200 transactions effective October 1, 2020, if passed. For more information, see HB 159.
If you need help determining which states you have crossed economic nexus thresholds, check out our Sales Tax Starter Kit service.
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:
- Sell taxable tangible items
- 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.
- Providing taxable services
3. Physical presence in Florida
The following creates 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.
Free State Audit Risk Guide
See which states pose the greatest risk to your business.
State-by-State Audit Risk Percentages
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.
If you are an e-commerce seller who is unsure of where you need to get a sales tax permit, check out our Sales Tax Starter Kit service. In fact, if at any point you are stuck and want a team of experts to handle all of this for you, don’t hesitate to contact us.
Disclaimer: Our attorney wanted you to know that no financial, tax, legal advice or opinion is given through this post. All information provided is general in nature and may not apply to your specific situation and is intended for informational and educational purposes only. Information is provided “as is” and without warranty.