A Quick Guide to Sales Tax in Florida

There are many great benefits to running a small business. You get to call the shots, chart your own course, and reap the riches and credit for your success. There’s a reason that small business owners are consistently found to be some of the most satisfied people in the country.

However, there’s a lot of responsibility one has to deal with as well as a small business owner. Successfully managing sales tax is just one of many of these endless responsibilities.

If you’re trying to manage sales tax in Florida, you might need some additional information to ensure you’re doing everything right. Read on and we’ll walk you through what you need to know.

Does My Business Need To Charge Sales Tax?

There’s a lot of confusion surrounding sales tax for business owners just starting in the state of Florida. Most of this confusion stems from the fact that while tangible products are taxable within the state, services are not.

So if you’re selling or working with a physical piece of property, you will need to charge sales tax. However, if you’re simply providing a service for someone and no tangible product is being sold, you would not need to.

This can get confusing. For example, an auto mechanic wouldn’t need to charge sales tax when repairing someone’s car, but they would need to charge sales tax on new repair parts ordered for the vehicle during this process.

Some products, however, are exempt from this requirement. Groceries, medicine, and gasoline, for example, are all tax-exempt products.

Registering For a Seller’s Permit

If you’ve determined that the products that you sell will require you to pay sales tax, you’ll need to register with the state. You can register for a seller’s permit, which is a permit that will allow your business to collect sales tax to benefit the local and state government.

You’ll need a long list of information about your business to register, including your federal employer identification number and the address of your business.

All small businesses that retain a sales permit will need to file a sales tax return with the government by the given due date. This tax return is required even if there are no taxes to report. A return still must be filed illustrating this fact.

How Much to Charge?

Many small business owners have trouble determining how much to charge different customers. This is understandable as different purchasing options require different rates of tax!

It’s a whole lot to keep on top of, which is why many business owners enlist the help of tax professionals to manage this work.

Different tax rates may need to be calculated for in-store purchases, in-state shipping, and out-of-state customers. Failure to charge the proper amount of tax can result in penalties a business might need to pay to the government.

Understanding Sales Tax in Florida

There’s always a great deal of work on the plate of any small business owner. If you’re confused about charging sales tax in Florida, the above information can help clear things up and provide a few answers.

Need more help managing the taxes for your small business? Contact Sterling Tax & Accounting anytime for assistance.