Key takeaway: Florida sales-tax compliance begins with the transaction: what is sold, where it is delivered or used, whether an exemption applies, and who must collect. Register when required, configure invoices correctly, reconcile each reporting period, and separately confirm that the return and payment were accepted.
Sales tax, consumer use tax and income tax answer different questions. Sales tax collected from customers is a liability. Use tax can be owed on the business’s own taxable purchases when the required tax was not paid. Income-tax returns concern income and deductions under separate rules. Keep the calculations and filing responsibilities distinct.
Determine taxability before setting the rate
Florida taxes specified transactions, including many retail sales of tangible personal property, rentals, admissions and specified services. “Taxable unless exempt” must be applied within that taxable base; it does not mean every professional service requires a customer exemption certificate. Identify the actual sale before evaluating a transaction, product or purchaser exemption.
The DOR sales-tax overview identifies taxable categories and current general rates. Florida’s general state rate is 6%, with exceptions such as 4% for amusement-machine receipts. Electricity is generally reported at a combined 6.95% state rate, comprising 4.35% under Chapter 212 and 2.6% under Chapter 203. Applicable exemptions and county surtax still need review.
Covered commercial real-property rent for occupancy periods beginning October 1, 2025 is no longer subject to Florida sales tax or discretionary sales surtax. Earlier occupancy periods remain subject to the prior rules. Transient accommodations, parking and tangible-personal-property rentals are outside that repeal. Use DOR TIP 25A01-04 rather than an older brochure’s blanket rental language.
Register for the actual business and locations
Register before beginning applicable taxable business activity in Florida. DOR’s registration process helps identify tax accounts based on the business’s facts. Have the legal entity, ownership, activities, locations and start date available. A Sunbiz filing or federal EIN alone is not a Florida sales-tax registration.
Florida locations generally require separate registration; out-of-state locations are treated differently under DOR’s application process. A Florida seller with physical presence cannot assume that the $100,000 remote-sales threshold is a small-business exemption. A remote seller or marketplace provider subject to the remote-sales rules must register, file and pay electronically under Rule 12A-1.103. The paper DR-1 alternative available in other circumstances does not override that requirement.
After registration, record the assigned filing frequency and account details. Add new locations or report ownership, entity and address changes through the appropriate DOR procedure. Do not assume one existing account automatically covers a new legal entity.
Configure invoices for products, services and delivery
Use the transaction’s applicable state rate and county surtax, including any transaction-specific limitation. County sourcing often follows delivery for ordinary goods; special rules apply to certain transactions. Use DOR’s current address and rate resources rather than a remembered combined rate.
Itemization makes a charge easier to review but does not change its legal treatment. For example, a repair of tangible personal property that incorporates parts generally has a taxable full repair charge, including labor, unless an exemption applies. Separately listing the labor does not make it exempt; see the DOR repair guide.
For transportation charges, Rule 12A-1.045 generally excludes a separately stated charge that the purchaser alone can elect to avoid, such as by arranging pickup. A mandatory delivery charge can remain taxable even when itemized. The rule also addresses F.O.B.-origin arrangements and third-party transportation. Keep the contract terms supporting the treatment.
Retain the appropriate evidence when relying on resale or purchaser exemptions. A current annual resale certificate, transaction authorization or annual vendor authorization may document a resale under DOR’s specified methods. Do not use a resale certificate for goods consumed by the business.
Review untaxed purchases for use tax
A supplier’s failure to charge tax does not establish an exemption. Review taxable purchases brought into or used in Florida and inventory withdrawn for business or personal use. Apply the relevant exemption and credit for a like tax lawfully imposed and paid to another state, supported by proof.
Section 212.06(7)–(8), Florida Statutes, provides the interstate-credit and prior-use framework. The six-month presumption generally concerns property actually used outside Florida for six months or longer before importation, subject to exceptions. It is not a universal exemption based merely on the purchase date or time in storage. Review rentals, boats and other special situations under their specific provisions.
Reconcile sales, tax liabilities and cash separately
Suppose a business earns $2,000 of taxable sales and collects $120 of state tax, excluding surtax only for this illustration. A $2,120 customer payment consists of $2,000 revenue and a $120 liability. If a processor retains a $50 fee, the bank receives $2,070. Revenue remains $2,000, the fee is an expense, and the tax liability remains $120 until remitted or otherwise properly resolved.
Paying the $120 decreases cash and the liability; it is not another expense. Actual reconciliations may also include refunds, discounts, reserves, unpaid invoices, marketplace remittances and timing differences. Explain those differences rather than forcing deposits to equal revenue.
| Control | Evidence to retain |
|---|---|
| Sales and exemption classification | Orders, invoices, item codes and applicable exemption support. |
| Tax calculation and location | Tax reports, delivery facts, rate lookup and exceptions. |
| Purchases subject to use tax | Supplier invoices, use records and tax-credit calculations. |
| Return reconciliation | Workpaper linking report totals to books and adjustments. |
| Filing and payment | Accepted return, payment confirmation and bank settlement. |
Calendar both the filing deadline and payment cutoff
The current DR-15 instructions state that returns and payments are due on the first and late after the twentieth day of the month following the reporting period. If the twentieth falls on a weekend or state or federal holiday, the return deadline moves to the next business day. Use the filing frequency assigned to the account.
Electronic payment has an earlier initiation cutoff: generally initiate it and obtain a confirmation by 5 p.m. Eastern on the business day before the twentieth. Consult DOR’s current DR-659 electronic-payment calendar for the exact date, including holidays. Filing the return on time does not prove payment was timely initiated or settled.
File for every assigned reporting period even when no tax is due. If an original return is wrong, follow the amended-replacement instructions and report the complete corrected period rather than only the change. Preserve the original, replacement, calculations and any additional payment confirmation.
Correct overcollections and undercollections properly
Fix the point-of-sale setting promptly, then identify the affected customers, transactions and filed periods. Amounts collected as tax cannot be kept as business income. Section 212.15 treats tax collections as state funds; use the applicable customer-refund or remittance procedure to resolve an overcollection.
When tax was erroneously collected and remitted, Rule 12A-1.014 requires the dealer to refund the customer before the dealer’s state credit or refund is approved. Keep proof and satisfy the applicable claim deadline and documentation requirements. Do not simply reduce another period’s payment without a supported, authorized credit.
For undercollections, calculate the unpaid liability and determine the required return correction and payment, including applicable interest or penalties. For a DOR notice, calendar the response or appeal deadline immediately. Gathering records or consulting an adviser does not extend that deadline by itself.
Keep Florida records for the required period
DOR’s audit guidance generally requires records for at least three years from the date the return was filed or required to be filed, whichever is later. Missing or substantially incorrect returns and substantial underpayments can require longer retention. Preserve documents needed for unresolved audits, refund claims and disputes.
Contact CPA Firm South Florida to discuss the locations, periods, transactions and filings needing assistance. Confirm deliverables, state coverage and fees in the written engagement. The firm’s pricing page separates sales-tax returns and ongoing bookkeeping from standard income-tax return preparation.
Frequently asked questions
Are all Florida services taxable unless a customer supplies an exemption certificate?
No. First determine whether the transaction is within the taxable base. A service outside that base does not require a purchaser exemption to become nontaxable. Specific product, transaction and purchaser exemptions have their own conditions.
Must a registered business file when no tax is due?
Yes. File for each assigned reporting period while the filing obligation remains active, even when no tax is due. Follow DOR account-closing and final-return procedures when the business ends.
Does buying an item six months before moving it to Florida guarantee no use tax?
No. The statutory presumption generally concerns actual use outside Florida for at least six months, subject to exceptions. Purchase or storage age alone does not establish that use. Also review exemptions and credit for qualifying tax paid to another state.
Can a seller keep excess tax collected from a customer?
No. Correct the customer overcollection and follow the applicable remittance, refund or credit procedure. Tax collections are not revenue. If tax was remitted, document the customer refund before claiming an eligible state credit or refund.