Florida Businesses - Do you have out-of-state customers?
If you have a business presence in a state, you must register with that state for tax purposes. Examples of business presence (sometimes referred to as nexus) include:
- Owning property in that state.
- Making regular deliveries of your merchandise in that state.
- Providing repair services in that state.
- Sending your representatives to solicit orders in that state.
If you sell items to customers in another state, but do not have nexus in that state, you do not have to collect sales tax on the items you sell to them. However, your
customers are responsible for paying use tax in their state on the items when they receive them.
- Use tax is due on the use of items that are brought into the state untaxed. It complements the state sales tax and is charged at the same rate. Use tax
applies to purchases from sources such as mail order catalogs, the Internet, television shopping networks, auctions, and toll-free shopping services. The use tax is
also due on taxable items purchased during out-of-state travel, when the merchandise is shipped to the individual's home state.
Businesses are encouraged to voluntarily register with their market states to collect sales tax from out-of-state customers. If you voluntarily register to collect tax, you
can help prevent your customers from receiving a bill from another state for use tax, penalty, and interest.
