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Florida to impose sales tax obligations on foreign sellers?

  • Mar 30, 2021 | Richard Asquith

Florida is edging closer to imposing sales tax collection obligations on foreign, or ‘remote’ sellers and facilitating marketplaces.  Following the 2018 South Dakota vs Wayfair Supreme Court ruling, states have been able to require non-resident sellers without ‘economic nexus’ in the state to collect sales tax on their sales to in-state consumers.

Contact Avalara for free guidance on the rules for foreign sellers and US sales tax. Or download our US sales tax guide for foreign businesses. 

Florida if one of the very few states that has not yet introduced the economic nexus test on sales tax obligations.  In does however raise much of its taxes from resident businesses. Florida consumers should declare and pay use taxes when they are not charged sales tax; but this typically leaves most taxes uncollected. This is all presenting a fiscal challenge with the ongoing economic disruption and loss of tourist visits due to COVID-19.

However, last week there were a number of hearings at the House and Senate on experiences in other states. The Senate Finance and Tax Committee also approved a potential change to the tax legislation to effect this. It included a $100,000 registration threshold on annual sales for remote sellers or facilitating marketplaces. 

Florida's general state sales tax rate is 6% with the following exceptions: 4% on amusement machine receipts, 5.5% on the lease or license of commercial real property and 6.95% on electricity.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara
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