Why Your Business Needs a Florida Resale Certificate
Any business that sells goods within Florida state or online to customers located in Florida is required to collect sales tax from the buyer. All businesses that collect sales tax in Florida must pay taxes to the state, and are therefore required to file for a certificate, or may face a penalty.
Does my business require a Tax Resale Certificate?
You may need a Tax Resale Certificate if any of the following describe your business:
- You operate in Florida and/or plan to sell or ship product to another party or customer in Florida
- You are changing the legal entity of your business, including moving your business, adding a location, or a change of hands in ownership
- Your business purchases items for resale in Florida state, including wholesale
- Your business provides rental property, including buildings and vehicles
- Your business provides taxable services as a part of your operations, including entertainment admissions charges
- You have employees or salespersons operating in Florida
I do business online to customers located outside Florida, do I still need to provide the state with my tax information?
Yes! Even if you do not charge sales tax to customers located outside of Florida, you must report the exempt tax sale to the State of Florida.
My business resells items that I purchase through wholesale - if I’m not paying taxes on wholesale purchases, why is a Tax Resale Certificate required?
All legitimate wholesale companies in Florida require a sales tax resale certificate for purchases, and should require a copy of your resale certificate before they sell to you at wholesale prices as a commercial retailer.
How do I know if the service my business offers is taxable?
Some services in Florida are not taxable, but if your business repairs or creates a product, you will need to collect sales tax. For example, an accountant would not need to collect tax for their services, but a business that services, sells, or installs car parts would need to collect sales taxes.