In order to receive exemption from collecting tax on the sale of a vehicle when buying it, the purchaser must be a Florida resident and have an Annual Resale Certificate for Sales Tax. Annual Resale Certificates allow businesses to re-sell property or services tax free and must be registered with the Florida Department of Revenue in order to be issued an Annual Resale Certificate. Purchases of items that become part of a product you sell don’t require sales tax, but rentals are exempt from sales and use taxes. Rentals such as equipment or furniture can be purchased without tax, but annual resale certificates cannot be used for resold or rented items. If the goods are intended to be resold, then use tax must be paid on the item.
Florida has strict laws concerning the sale of resale certificates and the criminal and civil penalties are severe for those found guilty of fraudulently using a resale certificate or attempting to sell one.
Sales tax rate – 6.000%
Information required to register for a sales tax permit in the state of Florida
1) Business name, physical address, contact information, and mailing address
2) Federal Employer Identification Number (FEIN); see instructions for item 8 if you do not have a FEIN
3) Bank routing number and account information if enrolling to file and pay tax electronically
4) Name, Social Security Number* (SSN), driver license number, address, and contact information of owner/sole proprietor, officers,
5) partners, managing members, and/or trustees
6) Dates when business activities began or will begin
7) Description of business activities
8) Employment information (date of hire, number of employees, payroll amounts, payroll agent’s PTIN, if applicable)
A Florida resale sales tax exemption certificate is a document that allows businesses to purchase or rent property or products tax-free. The certificate is valid for one year and must be renewed annually by businesses to maintain the exemption.
Certain purchases and rentals can be made without the need to pay sales tax. Some examples are nails, fabric, and wood incorporated into a chair; items which will be rented out as real property or tangible personal property; and services that will be resold.
In order to make a purchase or rental that falls under this category, you must have a resale sales tax exemption certificate. This document is required to make such a purchase or rental, so it’s important to keep it on hand.
You may have to report any use taxes if you resell an item you purchased. Use taxes are similar to sales taxes but apply only when merchandise is brought into your state for use there–not when it’s sold.
The purchaser does not need to circle one of the bullet points on the form in order for it to be valid- simply filling out and signing the form is enough. The address on the certificate doesn’t have to match the location address of your company. It just needs to include your business name and be up-to-date.
A selling dealer can accept an Annual Resale Certificate that has only a single owner’s name on it and not a d/b/a; this type of certificate would be considered valid for resales in any type of transaction (i.e., store, e-commerce). The selling dealer can also continue to sell tax exempt products to this customer (for example, on charge account or cash-on delivery basis).
As long as you have all the proper information filled out, the initial copy of the certificate is sufficient- there’s no need to send in multiple copies. So if you’re looking to get a resale sales tax exemption certificate, make sure to keep these things in mind!
If a reseller certificate is submitted by the business, supplier, or the provider of the service or goods, is authorized not the charge any sales tax, and the liability of sales tax, then lies with the re-seller, based on the value of the final sales. Ex. $100 worth of products are sold by business A. The reseller certificate (2A) was submitted by reseller b (2A). No sales tax is charged on this transaction. However, if the reseller sells the product for $200 or more, the $200 sales tax will be added to the final sales.
Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and to the south by the Straits of Florida and Cuba; it is the only state that borders both the Gulf of Mexico and the Atlantic Ocean. Spanning 65,758 square miles (170,310 km), Florida ranks 22nd in area among the 50 states, and with a population of over 21 million, is the third-most populous. The state capital is Tallahassee and the most populous city is Jacksonville. The Miami metropolitan area, with a population of almost 6.2 million, is the most populous urban area in Florida and the seventh-most populous in the United States; other urban conurbations with over one million people are Tampa Bay, Orlando, and Jacksonville.
Various Native American groups have inhabited Florida for at least 14,000 years. In 1513, Spanish explorer Juan Ponce de León became the first known European to make landfall, calling the region La Florida ([la floˈɾiða] for its lush greenery and the Easter season (Pascua Florida in Spanish). Florida subsequently became the first area in the continental U.S. to be permanently settled by Europeans, with the Spanish colony of St. Augustine, founded in 1565, being the oldest continuously inhabited city. Florida was repeatedly contested by Spain and Great Britain, before being ceded to the U.S. in 1819; it was admitted as the 27th state on March 3, 1845. Florida was the principal location of the Seminole Wars (1816–1858), the longest and most extensive of the Indian Wars in U.S. history. The state seceded from the Union on January 10, 1861, becoming one of the seven original Confederate States. After the Civil War, Florida was restored to the Union on June 25, 1868.
Since the mid-20th century, Florida has experienced rapid demographic and economic growth. Its $1.0 trillion economy is the fourth-largest of any U.S. state and the 16th-largest in the world; the main sectors are tourism, hospitality, agriculture, real estate, and transportation. Florida is world-renowned for its beach resorts, amusement parks, warm and sunny climate, and nautical recreation; attractions such as Walt Disney World, the Kennedy Space Center, and Miami Beach draw tens of millions of visitors annually. Florida is a popular destination for retirees, seasonal vacationers, and both domestic and international migrants; it hosts nine out of the ten fastest-growing communities in the U.S. The state’s close proximity to the ocean has shaped its culture, identity, and daily life; its colonial history and successive waves of migration are reflected in African, European, Indigenous, Latino, and Asian influences. Florida has attracted or inspired writers such as Marjorie Kinnan Rawlings, Ernest Hemingway and Tennessee Williams, and continues to attract celebrities and athletes, particularly in golf, tennis, auto racing, and water sports. Florida is also heavily noted for being a battleground state in American presidential elections, notably those in 2000, 2016, and 2020.Source