Florida resale certificate
If you own a business and you want to enter the market in Florida, there are several things that you have to comply with. All companies need to get a Florida Resale Certificate for sales tax even if their business is not located within the state. The federal government requires businesses to pay sales tax when they sell goods and services to Florida consumers.
More so, before a business can collect and remit sales tax to the state, they have to register with the Department of Revenue Office in Florida to get their Resale Certificate. With such a certificate, every business owner or representative will only be allowed to rent or buy property or services tax-free when it is re-sold or re-rented. An Annual Resale Certificate is also a tax exemption certificate. It also allows you to buy goods for your business without the local sales tax. Here are some of the common questions that new business owners ask when told to file or register for a Florida resale certificate.
Do I need a Resale Certificate in Florida?
Businesses joining the market in Florida need to pay sales tax even if they do not have a retail location in the area. For instance, those who work remotely with warehouses, offices or employees in another state will need to register for a Florida Sale Tax and Annual Resale Certificate.
More so, retailers selling on Amazon may get a “Nexus” in Florida. Nexus refers to having a physical location in the state which obligates business owners to pay tax. This will apply when you use the Fulfillment by Amazon, because your goods may be stored in a warehouse by Amazon in Florida.
Nexus is a term for having a physical location in a state that triggers the obligation to pay sales taxes. You could have sales tax nexus in Florida because you have an office, warehouse, or remote employee based in the state. Thus, you need to check and monitor your Inventory Event Details to see where your products are stored. This will protect you from potential tax issues. On the other hand, your Annual Resale Certificate is valid for a year and you need to renew it before it expires.
Do I Need a Resale Certificate?
A Florida Resale Tax Certificate or a Reseller’s Permit is a legal document that you will need to prevent Florida tax sales payments for goods, resources or services that you will offer to Florida consumers. Resale tax for items is supposed to be paid only once and it is paid for by the customer. Sellers are not supposed to shoulder tax for the goods that they sell. Thus, with this permit, suppliers are informed that a reseller is licensed to re-sell the items and that they should not collect tax when they are sold to you. Keep in mind that suppliers will require this certificate before they push through with their transactions with you.
On the other hand, although you can avoid paying tax on items you resell with the resale certificates, the things you will use for your business or those that you don’t resell will still be taxed.
Do I Need A Resale Certificate to Sell Online?
If your business buys goods or resources to re-sell and you don’t want to pay tax for them, you will need a reseller’s permit or resales certificates. For instance, you want to purchase wholesale products for your online store in eBay or Amazon, you still need to apply and register for Resale Certificates. Suppliers and resources will often ask buyers to present this resale certificates before they conduct business with you.
Some states do not require resellers to register for a resale certificate. These include Montana, Alaska, New Hampshire, Oregon, and Delaware. Those who live in these states can conduct businesses without the need for a reseller’s license. On the other hand, if you will be using Amazon Fulfillment services, check whether you have stocks stored in Florida warehouses as you might need to register for a Florida Resale Certificate for them.
Do I need A Resale License to Buy Wholesale?
US citizens with businesses that require the purchase of wholesale products from US-based suppliers may require a Resale permit or reseller’s license from the state where they are located.
Likewise, a resale certificate will allow business owners and resellers to buy wholesale goods without the need to pay sales tax. With this certificate, business owners can also collect sales tax from customers as the end consumer of the goods.
Without this certificate, business owners will be obligated to pay sales tax on the goods that they buy wholesale for the purpose of reselling them. While some owners just add the tax you paid as a deduction on the return. But it will complicate matters than just presenting a reseller’s permit when transacting with suppliers.
Keep in mind that most suppliers will ask for a sales tax license or reseller’s ID before they sell any goods to you. This is because they are obliged to check whether they need to collect sales tax with you as the end-user.
It is relatively easy to get an Annual Resale Certificate. This is specifically true if you have a business or a market in Florida. There are several ways to file your application including the required documents. They have an online application system that makes it easier for businesses to apply. Likewise, you can check out their online site for a list of resources and other common questions.
As business owners, you don’t want to pay sales taxes for items that you sell. Unless you will be using it as the end consumer, the goods you buy on wholesale should not be taxed. Thus, it is essential for you to register and get your Annual Resale Certificate in Florida if you have a market or a physical store in the state. Resale licenses work like a “flag” that says you sell to others and you can purchase wholesale goods without paying taxes.