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When Out-of-State Businesses Must Collect Tax in Florida


 Does Your Business Deliver Goods to Florida? You May Have Nexus and Owe Taxes.

The Florida Department of Revenue reminds out-of-state businesses that "[e]ven though you are out of state, you may be required to register or file tax in Florida."

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."

Sales tax:

"Each sale, admission charge, storage, or rental is taxable unless the transaction is exempt."

Use Tax:

"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.

Work in a number of states and don't know whether or not you should collect and remit sales and use tax in Florida? Contact your local taxpayer service center. Or let someone else do it for you.

The Florida DOR wants to know about businesses that aren't complying with the state tax laws. Report possible tax violations.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.