Florida Freight Forwarder Sales Tax Exemption
Navigate Florida's sales tax exemption for exported goods. This guide covers the procedural steps for sellers and freight forwarders to ensure full compliance.
The Florida freight forwarder sales tax exemption prevents the state’s sales tax from applying to goods that are temporarily in Florida before being exported. This provision ensures that tangible personal property bought in the state for shipment to a foreign destination is not subject to local taxes. The exemption benefits sellers, who would otherwise collect sales tax, and encourages international sales by positioning Florida as an export hub. The focus is on the goods and their ultimate destination, not the services provided by freight forwarders.
Qualifying for the Exemption
To use the freight forwarder exemption, a transaction must meet several criteria. The sale must involve a freight forwarder who is registered with the Florida Department of Revenue and holds a valid “Florida Certificate of Forwarding Agent Address.” The forwarder’s role is to take possession of the goods within the state for the sole purpose of exporting them.
The exemption applies only to the sale of tangible personal property. It does not extend to services, intangible property, or items like boats and aircraft, which are governed by different export rules. The property must be committed to the exportation process from the moment the forwarder receives it and cannot be used or consumed in Florida.
It is the seller of the goods who claims the exemption on their sales tax return, with the forwarder acting as a qualifying agent. If the goods are not exported as required, the basis for the exemption is voided.
Required Documentation and Information
The primary document for this exemption is the “Florida Certificate of Forwarding Agent Address,” which serves as the seller’s evidence for not collecting sales tax. This certificate is the forwarder’s declaration that the goods are for export. To be valid, the certificate must be complete and accurate.
It must include the freight forwarder’s legal name, business address, and Florida freight forwarder registration number. The form also requires the seller’s business name and sales tax registration number, along with a clear description of the property being purchased for export.
Sellers can obtain the official form from the Florida Department of Revenue’s website. Before the transaction, a seller should verify the forwarder’s registration is active using the Department’s online tools to protect against liability from an invalid status.
The Exemption Process in Action
The exemption process begins at the point of sale when the freight forwarder presents their “Florida Certificate of Forwarding Agent Address” to the seller. The seller must have this certificate to waive the collection of sales tax.
Once the certificate is provided, the seller must deliver the property directly to the forwarder’s location or ship it there via a common carrier. This transfer ensures a clear chain of custody and shows the goods were handed over for export. The forwarder then arranges for the goods to be shipped to their final destination outside the United States.
After the sale, the seller must obtain proof that the goods have been exported. This proof is typically a copy of official export documentation, such as a rated bill of lading or an air waybill. This final document provides concrete evidence that the transaction qualified for the exemption.
Record-Keeping for Compliance
Both the seller and the freight forwarder must maintain records to substantiate the tax-exempt status of a transaction during a potential audit. For each exempt sale, the seller’s compliance file must contain a copy of the “Florida Certificate of Forwarding Agent Address,” the sales invoice, and the proof of export.
The freight forwarder also has record-keeping responsibilities. They must keep copies of their state registration documents to prove their eligibility. They must also retain all documentation related to the export, including bills of lading and customs declarations, to demonstrate their role in facilitating the export.
If the goods are not exported, the freight forwarder is responsible for remitting the sales tax. However, a seller who accepts a valid certificate in good faith and can document the delivery of goods to the forwarder is not liable for the uncollected tax.