Are you confident your sales tax filings are correct?
Florida tax rules can be confusing, especially when it comes to sales tax.
Owners who want a better understanding of when to collect, where to file, and how much to charge should continue reading below. We’ve answered everything there is to know about Florida’s sales tax.
1. What is Florida’s Rate?
The current rate for Florida’s sales tax is 6%. Although this is the standard rate, it is important to note that the rate varies depending on the goods or services being sold, with certain things like mobile homes sitting at 3% and electricity at 6.95%.
Many counties within Florida also add a local surcharge onto the 6% standard rate, which is dependent on where the sale took place. This means owners need to take into consideration where the sale location is happening and not just their business address when setting a sales tax rate on their goods or services, as it could end up being much higher than the standard 6%.
2. What Items Are Taxable?
Most tangible personal property items are taxable in Florida, including things like physical products, prepared food and beverages, and clothing or accessories.
However, most services are not required to have sales tax applied to them, which can be confusing to business owners. Given the nuances in the service category, it’s important that owners speak to a tax professional or check with the Florida Department of Revenue website regularly to determine if it will be applied to them.
3. Which Businesses Are Required to Collect Sales Tax?
Businesses that sell taxable goods and services in Florida are usually required to pay sales tax. This means that any out-of-state sellers who had transactions in the state of Florida should be prepared to pay sales tax on them. This is especially important for owners who use online and remote sale platforms like Shopify, Etsy or Amazon, as they may be liable and should ensure their sales tax settings are accurate and up to date.
4. Are Sales Tax Exemptions Available?
There are certain things that Florida has sales tax exemptions on. Some things include resale purchases, sales to non-profits, or transactions with tax-exempt organizations. However, for these transactions to qualify, owners need to have proper documentation, including resale or exception certificates, to support the claim. Failing to keep these records can cause a business to be liable for unpaid taxes, as the government will not see it as a justifiable tax-exempt sale.
5. How Often Do I Need to File Sales Tax?
Sales tax filings vary depending on a business’s volume, with some owners having to pay monthly, quarterly, or annually.
For new business owners, monthly filings are required and are due no later than the 20th of the month following the reporting period. Missing these deadlines can result in penalties and interest, even if no tax is owed, so be sure to submit the paperwork on your designated dates.
6. What Happens If I Forget to File?
Late or incorrect filings will immediately begin to incur interest and penalties. Not only will a missed filing incur fees, but frequent delinquencies might cause the state of Florida to flag the account for non-compliance, resulting in an audit or licensing issue.
If you’re a business owner unsure of when and how frequently you should be filing, consider getting in touch with us at A.P. Accounting & Tax Services. Our dedicated team of trained professionals understands the nuances of Florida tax laws and can help you stay on top of your filings.
To see how our staff can help you, give us a call today at 407-328-5001.
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