When Out-of-State Businesses Must Collect Tax in Florida
- Jan 16, 2013 | Gail Cole
Business Connection = Nexus
Florida DOR provides a partial list of activities that "create a business connection (also called nexus) in Florida. You probably have nexus and owe tax if you:
- "Have employees, agents, or independent contractors conducting sales or the business activities."
- "Maintain an office or other place of business in Florida."
- "Assemble, install, service, or repair products in Florida."
- "Own, rent, or lease real property or tangible personal property in Florida."
- "Deliver goods to Florida customers using your company-owned or leased truck."
"Each sale, admission charge, storage, or rental is taxable unless the transaction is exempt."
"Use tax is due on the use or consumption of taxable goods or services when sales tax was not paid at the time of purchase." For example, use tax is owed if:
- You buy a taxable item in Florida and didn't pay sales tax;
- You buy an item tax-exempt intending to resell it and then use the item yourself or in your business; and
- You buy a taxable item outside Florida without paying sales tax and bring it or have it delivered to Florida.
In addition to the state sales and use tax rate, any applicable discretionary sales surtax (such as a county or municipal sales tax) must be paid.
The Florida DOR wants to know about businesses that aren't complying with the state tax laws. Report possible tax violations.