When starting a business in Florida, there are several registrations to take care of. The most common is the Florida seller’s permit, which is sometimes referred to as a retailer certificate, sales tax license, sales and use tax number, or sales tax registration.
Keep reading to learn who needs a sales tax permit, what kinds of products and services are taxable, how to register, and what you need to do for reporting.
Related: Guide to starting a business in Florida
Who needs a Seller’s Permit in Florida?
A business must register as a retailer in Florida when:
- A business has sales tax nexus. Nexus means having a physical presence in the state, such as having a physical location like a retail store or office or using a warehouse or fulfillment center to store inventory.
- Selling taxable items at retail
- Repairing or altering tangible personal property
- Renting or leasing property for six months or less (such as hotels, apartments, mobile home parks, RV parks, etc.)
- Charging admission to any place of amusement, sport, or recreation
- Manufacturing or producing goods for retail sales
- Selling service warranty contracts
- Operating vending or amusement machines
- Providing taxable services (such as interior commercial cleaning services or commercial pest control services)
What products and services are taxable in Florida?
Physical Products
There are a few exceptions, but almost all physical products are taxable when sold at retail in Florida. Common examples include:
- General merchandise like furniture, appliances, and clothing
- Titled or registered items like vehicles
Groceries, prescriptions, and some medical devices are tax-exempt.
Digital Products
Digital products aren’t taxable in Florida.
Services
Most services aren’t taxable in Florida, however, there are a few exceptions.
- Short-term rentals
- Pest control services for nonresidential buildings
- Interior cleaning services for nonresidential buildings
- Repairs or alterations of tangible personal property
- Detective services
- Protection services
- Security alarm system monitoring services
How to register for a Florida seller’s permit
A seller’s permit can be obtained by registering through the Florida Department of Revenue or by mailing Form DR-1 (Florida Business Tax Application)
Information needed to register includes:
- Beginning date of taxable business activity
- Business name, physical address & telephone number
- Federal Employer Identification Number (FEIN) from the IRS or the owner’s Social Security Number if a sole proprietorship with no employees
- Type of business entity: sole proprietorship, general partnership, corporation, Limited Liability Company (LLC)
- Charter number (number provided by the Flordia Department of State for corporations and LLCs)
- Names and addresses of owners/officers/members
- Description of what products or services are being sold
- North American Industry Classification System (NAICS) code
- Projected monthly sales
- Number of employees and their date of hire
Sales tax reporting
How is sales tax collected?
When a business sells a taxable product or service, it charges the appropriate sales tax rate to the customer. The company collects this tax and sends it to the Florida Department of Revenue.
How much sales tax is charged?
If the purchase is made at a store or in a mobile location, the sales tax rate varies depending on where the sale took place in Florida. In addition to the statewide tax, several counties have an additional discretionary sales surtax. When shipping in-state, the sales tax is based on the purchaser’s address.
The Florida Department of Revenue has information on sales tax rates by location to determine how much sales tax to charge.
When are Florida sales tax returns due?
The Department of Revenue will determine a filing frequency based on the expected annual sales volume, which will be monthly, quarterly, semiannually, or annually. Generally, a business collecting over $12,000 annually in sales taxes will file monthly.
Filings are due the 20th day of the month following the reporting period unless the 20th falls on a weekend or federal holiday, which would move to the next business day.
Even if the business had no sales during the reporting period, a filing indicating no sales is still required.
Florida Seller’s Permit FAQs
How much does a Florida Seller’s Permit cost?
There is no cost for a sales tax permit in the state of Florida when registering online, however, there is a $5 fee if applying by mail.
How long does it take to get a Florida Seller’s Permit?
Expect 2-3 business days to receive a Florida Certificate of Registration (Form DR-11) when registering online or 7-10 business days when applying by mail.
Do you have to renew your Florida Seller’s Permit?
The sales tax permit is a one-time registration, and no renewals are needed. Be mindful that if any information about the business changes, such as the mailing address, additional locations, or change in ownership, those changes need to be updated with the Department of Revenue.
Is a business license the same thing as a Seller’s Permit?
No – A business license and a sales tax permit serve different purposes and are not the same.
A business license authorizes you to conduct business within a particular locality, ensuring compliance with local regulations. Conversely, a sales tax permit enables your business to legally collect sales tax on sales, which you then remit to the state government.
Most businesses require both a license and a seller’s permit.
How do I get a wholesale license in Florida?
A business can purchase items to resell without paying state sales tax. The tax liability is passed from the distributor to the retailer, who will then charge sales tax to the end-user of the item.
Upon applying for a sales tax permit, the business will also receive a Florida Annual Resale Certificate for Sales Tax – Form DR-13 (also referred to as a wholesale license or sales tax exemption certificate). This certificate will allow the business to buy or rent goods and services tax-free if they are resold.
More details on collecting sales taxes are available from the Florida Department of Revenue.
If you have questions about the sales tax permit, the Florida Department of Revenue can be contacted by calling 850-488-6800 or visiting a local service center.
