fbpx

Florida Sales Tax 2022 for Businesses: A Complete Guide

“The sales tax for businesses in Florida is 6%”

What Does Sales Tax For Businesses In Florida Mean?

A sales tax is a fee levied on the sale of specific products and services by a governing body (state or local). Florida enacted its first general state sales tax in 1949, and the rate has since climbed to 6%. There may be one or more local sales taxes, as well as one or more special district taxes, in addition to the state sales tax, each of which can range from 0.10 to 2%. Combined sales tax rates in Florida currently range from 6.3 to 8.3 percent, depending on where the sale is made.

How Much Is The Sales Tax For Businesses In Florida?

The current state sales tax rate in Florida (FL) is 6%. The total rate might be as high as 8% depending on the city, county, and local tax jurisdictions.

All sellers of tangible property or goods (including leases, licenses, and rentals) in the state of Florida must register with the state and submit and pay sales tax. You can utilize an approved vendor, such as Returns for Small Business, or enroll in the e-Services program and follow payment due dates yourself to file and remit online.

Florida Sales Tax Rate Threshold Limit
6% $100,000 economic sales threshold limit

Read More: Montana Sales Tax 2022 for Businesses: A Complete Guide

Do You Need To Collect Florida Sales Tax For Your Ecommerce Business?

If you have a nexus in Florida, you must collect sales tax. Nexus refers to the connection between sellers and a state in two ways: physically or economically. Physical nexus refers to having sufficient tangible presence or activity in a state to justify paying sales tax there. Economic nexus occurs when the total income or number of transactions exceeds a state’s economic threshold.

Therefore, this is what the sales tax for businesses in Florida is all about. Now the question arises: what types of goods and services are taxable in Florida? Let’s see.

Alan Chen

Free 30-Min Strategy Session

By the end of this Strategy Session, you will have a clear understanding of the next steps you can take for your business to take advantage of the tax deductions you are missing out on.

What Types of Goods and Services Are Taxable In Florida?

Transactions

Sales tax is legally required to be collected from any tangible, physical things sold to a consumer in the state of Florida. Certain groceries, any prosthetic or orthopedic tools, medications considered to be ordinary household remedies, seeds and fertilizers, and cosmetics are all exempt from this tax.

This means that someone selling children’s books in Florida would be compelled to charge sales tax, but someone selling makeup might not be.

Services

In most cases, the state of Florida does not collect sales tax on the vast majority of services rendered. Investigative and crime-prevention services, interior nonresidential cleaning services, nonresidential pest control services, and services that entail fixing or manufacturing a product are all examples of taxed services.

This means that a yoga instructor is exempt from collecting sales tax, yet a private investigator may be obligated to do so.

Therefore, if you are dealing in any of these goods and services, then you are subject to pay sales tax in Florida. Now, let’s move on to see about the Florida sales collection and sales filing procedure.

Sales Collection

Sales tax is collected in Florida on the sale of tangible items and certain services. The vendor is responsible for collecting the tax and remitting it to state and municipal tax authorities. De facto, the seller is a tax collector.

Start by completing the following three questions to see if you need to collect sales tax in Florida:

  • Do you have a Florida nexus?
  • Do you sell taxable products or services to residents of Florida?
  • Do your customers have to pay sales tax?

If you answered yes to all three questions, you must register with the state tax authorities, collect the correct amount of sales tax per transaction, file returns, and remit to the state.

Tax Filing

You must remit sales tax to the Florida Department of Revenue by a specific date after collecting it. The Florida Department of Revenue will then disburse it as needed.

The process of filing a Florida sales tax return consists of submitting the appropriate sales data (filing the report) and remitting the collected tax dollars (if any) to the Florida Department of Revenue (DOR). You must identify your total sales in the state, the amount of sales tax received, and the location of each sale as part of the filing procedure.

Additionally, you can file with the Florida DOR directly by visiting their website and manually entering your transaction details. Although this is a free service, preparing Florida sales tax returns takes time, especially for bigger businesses.

How often do you need to file the Florida sales tax return?

The Florida Department of Revenue will assign you a filing schedule. This is usually defined by the amount or volume of your company’s sales. State governments usually require larger companies to submit more reports on a more regular basis. Returns and payments for Florida sales taxes must be submitted at the same time and have the same due date.

What Happens If You Don’t File Your Tax Return By The Due Date?

Late Filing

If you file your Florida sales tax return late, you may be charged a late filing penalty as well as interest on any unpaid taxes. See our section on fines and interest for additional details.

The Florida DOR may give you an extension if you miss a Florida sales tax filing deadline due to circumstances beyond your control (e.g., weather, accident). You may, however, be required to present evidence to back up your allegation.

Penalties and Interest

Hopefully, you won’t have to worry about this chapter because you’re already filing and remitting Florida sales tax correctly and on time. However, mistakes can happen in the actual world.

If you miss a sales tax deadline, remember that “better late than never” and file your return as soon as you can. Penalties and interest may apply if you fail to file returns and remit collected tax on time, and the longer you wait to file, the higher the penalty and interest.

If you’re thinking about buying a firm, it’s a good idea to contact the Florida Department of Revenue and ask about the current status of the deal. You’ll be responsible for all outstanding Florida sales and use tax liabilities once you’ve purchased the business.

Need Assistance With Florida Sales Tax

At Freecashflow.io, we provide assistance with tax and accounting issues for internet entrepreneurs. In addition to working with multibillion-dollar firms, we have worked with Warner Brothers, Ernst & Young, and Paramount Pictures. If you need help with taxes or accounting, we can help. Feel free to contact us with any questions or concerns.

Share on twitter
Share on linkedin
Share on email

Free E-book for E-Commerce Entrepreneurs

9 Most Crucial eCOM Tax Deducations The IRS Doesn’t Want You to Know
Share on facebook
Share on twitter
Share on linkedin

Explore More

Boost Your E-Commerce Business Now

drop us a line and keep in touch
Alan Chen

Schedule Your Call with Alan!

Hate working with accountants that don’t understand your online business?

By the end of this Strategy Session, you will have a clear understanding of the next steps you can take.

 This Call Is Completely FREE.

Take Less Than 60 Seconds To Share What You Love

Share on facebook
Facebook
Share on twitter
Twitter
Share on reddit
Reddit
Share on linkedin
LinkedIn