Requirements for Out-of-State Retailers

Effective July 1, 2021, Florida law requires out-of-state retailers with no physical presence in Florida to collect, report, and remit sales and use tax, including any applicable discretionary sales surtax, on remote sales into the state if the retailer has made taxable remote Florida sales in excess of $100,000 over the previous calendar year.

Taxation of Marketplace Sales

Marketplace providers having a physical presence in Florida, or that have made or facilitated any number of taxable remote Florida sales in the previous calendar year in which the sum of the sales prices exceeded $100,000, are required to register online to collect and must electronically report and remit Florida sales tax and discretionary sales surtax on taxable Florida retail sales made through the marketplace.

A marketplace provider that is required to register must also certify to its marketplace sellers that it will collect and remit the applicable tax on the taxable Florida retail sales made through the marketplace. The certification may be included in the agreement between the marketplace provider and the marketplace seller.

A marketplace seller that has a physical presence in Florida or that makes a substantial number of remote sales (in excess of $100,000) to Florida customers outside of the marketplace must register online as a dealer and collect and electronically remit tax on those taxable Florida retail sales made outside of the marketplace.

When the marketplace provider certifies to the marketplace seller that it will collect and remit the tax, the marketplace seller may not collect the tax and must exclude sales made through the marketplace from the marketplace seller’s tax return, if applicable.

Marketplace providers and persons making remote sales must collect discretionary sales surtax when delivering tangible personal property to a Florida county imposing a surtax. Discretionary sales surtax rates currently levied vary by county. The Discretionary Sales Surtax Information for Calendar Year 2021 (Form DR-15DSS ), contains the current discretionary sales surtax rates by county.

Starting April 1, 2022, marketplace providers will also be responsible for collecting and remitting Florida's prepaid wireless fee, lead-acid battery fee, and new tire fee, when applicable.

Terms Defined:

• A “remote sale” refers to a retail sale of tangible personal property ordered by mail, telephone, the internet, or other means of communication from a business that receives the order outside of Florida and transports the property or causes the property to be transported from any jurisdiction to a location in Florida.
• A “marketplace” means any physical place or electronic medium through which tangible personal property is offered for sale.
• A “marketplace provider” is a person or business that facilitates a retail sale by a marketplace seller by listing or advertising for sale by the marketplace seller tangible personal property in a marketplace. A marketplace provider, either directly or indirectly through agreements or arrangements with third parties, collects payment from the customer and transmits all or part of the payment to the marketplace seller, regardless of whether the marketplace provider receives compensation or other consideration for its services. Marketplace providers do not include:
  
  
  • Persons who solely provide travel agency services.
  • Persons who are delivery network companies and not registered as dealers under Chapter 212, Florida Statutes.
  • Persons whose sole activity is to process payment transactions between two or more parties.
• A “marketplace seller” means a person or business that has an agreement with a marketplace provider that is a dealer under Florida law and that makes retail sales of tangible personal property through a marketplace owned, operated, or controlled by the marketplace provider.

You must provide certain information depending on the type of business and the taxes for which you are registering, such as business activities, business location, and opening date. You may download the Department’s Registering Your Business (Form DR-1N ) to assist you with the information needed for registration based on your business's legal entity type. Addresses to be used for mailing must be valid according to the United States Postal Service website.

If you have started an online Florida Business Tax Application, you can resume your unfinished session using your user id and password you created for your online registration profile.

To check the status of a submitted online registration or to retrieve your approved certificate number, log in to the Florida Business Tax Application using your user id and password you created for your online registration profile. Note: Allow three business days for the processing of a new application before checking the status.

Registering for Other Taxes and Licenses

You must submit a registration application for the following taxes and licenses:

• Air Carrier Fuel Tax - Application for Air Carrier Fuel Tax Licenses (Form DR-176 ).
• Fuel and/or Pollutants Tax - Registration Package for Motor Fuel and/or Pollutants Registrants (Form GT-400401 ).
• Secondhand Dealers and Secondary Metals Recyclers - Registration Application for Secondhand Dealers and Secondary Metals Recyclers (Form DR-1S ), which includes instructions.

After your registration application is processed and you receive your approved certificate number, you will be mailed a welcome package containing your Certificate of Registration, an Annual Resale Certificate, and a helpful brochure, New Dealer Guide to Working with the Florida Department of Revenue (GT-800054 ).

If you need additional assistance, the Department’s General Tax Administration Program webpage provides a variety of online resources to help you make your new business a success. Among the specific links you may find useful:

• Our Taxpayer Education webpage provides guides and tutorials, recorded webinars, and other helpful information on a range of tax issues, including overviews of sales and use tax for business owners and reemployment tax basics for employers.
• Our Forms and Publications webpage provides easy access to downloadable forms that you may need to register and pay Florida taxes.
• If you have a question about sales and use tax, corporate income tax, or other taxes administered by the Department, visit the Have a Tax-Related Question? webpage, which provides a database of frequently asked questions that can assist you in finding the answer. (You can also submit your question to the Department if you are unable to find the information you need.)

Governmental entities and certain nonprofit organizations may apply for exemption from sales and use tax on purchases for their own use. Download the Application for Consumer's Certificate of Exemption (Form DR-5 ). Depending on the organization's structure and activities, registration with other agencies may also be required. For more information, visit the Department's Nonprofit Organizations webpage.

Once registered, you can enroll to file and pay electronically. If you are a registered taxpayer and would like more information on electronic file and pay requirements, visit the Department’s Enroll to File and Pay Electronically webpage.

If you hold an active certificate of registration or reemployment tax account issued by the Department because you previously submitted a Florida Business Tax Application (Form DR-1), use the online Florida Business Tax Application, or complete and submit the paper Application for Registered Businesses to Add a New Florida Location (Form DR-1A ) to register:

• An additional business location or Florida rental property
• A registered location that has moved from one Florida county to another

to collect, report, and pay the following Florida taxes:

For more information on submitting an application, see Registering Your Business (Form DR-1N ), or visit the Department's Taxpayer Education webpage, Learn More with Guides and Tax Tutorials.

You must notify the Florida Department of Revenue if you:

• Change your business name;
• Change your mailing address;
• Change your location address within the same county;
• Close or sell your business; or
• Your business becomes active and you will sell or rent taxable property or services.

The quickest way to notify the Department of these changes is to update your account online.

When to Submit a New Tax Application

You must submit a new registration using the online registration system or complete a paper Florida Business Tax Application (Form DR-1 ) if you:

• Move your business location from one Florida county to another;
• Add another location;
• Change your legal entity; or
• Change the ownership of your business.