Starting July 1st, a new Florida law significantly changes the way sales tax is collected and reported for online retailers. This new law brings Florida into line with economic nexus standard for sales tax purposes adopted by most states in the wake of the Wayfair decision.
Out-of-State Sellers May be Required to Collect and Remit Florida Sales Tax
For businesses not located in Florida, a seller is considered to have economic nexus if they make sales exceeding $100,000 during the previous calendar year. Sellers who exceed this threshold during the previous calendar year will be required to register to collect and remit Florida sales tax. Note that Florida has not instituted a number of transactions threshold, only a dollar limit threshold.
Marketplace Providers Now Required to Collect and Remit Florida Sales Tax on Behalf of 3rd Party Sellers
Marketplace providers, such as Amazon and Ebay, who facilitate transactions between marketplace sellers and end customers, having a physical presence in Florida or making a substantial number of remote sales (over $100,000 threshold) are now required to register to collect and remit sales tax on behalf of their third-party marketplace sellers. They are also required to certify to their marketplace sellers that they will be collecting and remitting the applicable Florida sales taxes.
New Rules May Change How Your Business Reports Florida Sales Tax
If you are a Florida business who sell goods through marketplaces such as Amazon, Ebay, and the like you will no longer be responsible for collecting and remitting sales tax on sales made through these channels.
Of course, if your business sells both through marketplace and other channels where you remain responsible for collecting and remitting the sales tax, you will need to continue to maintain your registrations and file sales tax returns as required.
For sellers operating exclusively through marketplaces, the requirements are not so clear as the Florida Department of Revenue has not yet provided guidance on whether such businesses must remain registered. In the meantime, even if all your sales are covered by the marketplaces, you should continue to maintain your Florida sales and use tax registration and file returns to report these sales as exempt to avoid penalties.
Navigating the new Florida Sales Tax requirements can be tricky. Our HSC team is here to assist you with registering or maintaining your sales tax account and determining how these new rules may impact your business. Please do not hesitate to contact us!