How to File a Sales Tax Return in Florida

Businesses selling goods or certain services in Florida must collect and remit sales tax. Filing a sales tax return ensures the correct amount is reported and paid to the state. Failing to do so can lead to penalties, interest, and legal issues.

The process involves registering for a tax account, collecting the appropriate tax, and submitting returns on time. Understanding each step can help prevent mistakes and simplify compliance.

Who Must File in Florida

Any business with a physical presence in Florida, such as a storefront, warehouse, or office, must file sales tax returns if it sells taxable goods or services. This includes retailers, wholesalers, and service providers engaged in taxable transactions. Businesses without a physical location in Florida may still have to file if they exceed $100,000 in sales to Florida customers in the previous calendar year.

Online marketplace facilitators processing over $100,000 in sales to Florida buyers must also collect and remit sales tax. This requirement ensures out-of-state sellers contribute to state tax revenue like local businesses. Noncompliance can lead to fines and interest on unpaid taxes.

Some businesses qualify for exemptions, such as nonprofits that meet state criteria. However, exemption status does not always eliminate filing obligations. Exempt entities may still need to report sales tax collected on taxable transactions. Businesses should review their responsibilities to avoid unexpected liabilities.

Types of Transactions Subject to Tax

Florida imposes sales tax on tangible personal property, certain services, and specific digital goods. Tangible personal property includes electronics, furniture, clothing, and household items. The state sales tax rate is 6%, but local surtaxes can increase it depending on the county.

While most professional and personal services are not taxed, some are. Repair, maintenance, or installation services involving taxable goods are subject to sales tax. For example, if a business repairs a vehicle and charges for both parts and labor, the total amount may be taxable unless labor is separately stated. Commercial cleaning services for nonresidential properties are also taxable, while residential cleaning services are not.

Digital products are taxed under certain conditions. Florida does not broadly tax digital downloads such as e-books or streaming services, but prewritten software sold digitally is taxable. Cloud-based software taxation depends on whether it is classified as a service or a product.

Leases and rentals of tangible personal property are also taxed. This includes short-term equipment and vehicle rentals, as well as commercial real estate. As of 2024, businesses leasing office space must pay a 4.5% sales tax on rent, a rate that has been gradually reduced. Vacation rentals, including those listed on Airbnb and Vrbo, are subject to both state sales tax and local tourist development taxes. Property owners renting out short-term accommodations must ensure they collect and remit the correct taxes.

Steps to File

Filing a sales tax return in Florida involves registering for a tax account, collecting the correct tax, and submitting returns on time.

Registration

Before collecting sales tax, businesses must register with the Florida Department of Revenue (DOR) to obtain a sales tax certificate. Registration can be completed online through the Florida Business Tax Application (Form DR-1) on the DOR’s website. Businesses must provide details such as their federal employer identification number (FEIN), business structure, and estimated monthly sales.

Once registered, businesses receive a Certificate of Registration and a Resale Certificate, allowing them to buy inventory tax-free for resale. Filing frequency—monthly, quarterly, or annually—is based on expected sales tax liability. Businesses collecting more than $1,000 in sales tax per year typically file monthly. Failure to register before making taxable sales can result in fines and back taxes.

Collecting Tax

Businesses must collect the correct sales tax on taxable transactions. Florida’s base rate is 6%, but counties can impose a discretionary sales surtax ranging from 0.5% to 2.5%. The total rate depends on the county where goods are delivered or services performed.

To ensure accuracy, businesses should use point-of-sale (POS) systems or accounting software that calculates the correct tax rate. For example, a retailer in Miami-Dade County, where the surtax is 1%, would charge a total of 7% on taxable sales. Sales tax must be separately stated on customer invoices.

Sales tax collected is considered a trust fund tax, meaning businesses hold it on behalf of the state. Misusing these funds for business expenses can lead to severe penalties. Proper recordkeeping and regular reconciliation help prevent discrepancies when filing returns.

Submitting Returns

Sales tax returns must be filed and paid by the 20th of the month following the reporting period. For example, a business filing monthly must submit its January sales tax return by February 20. If the due date falls on a weekend or holiday, the deadline extends to the next business day.

Returns can be filed electronically through the Florida eServices portal, which is required for businesses paying more than $5,000 in tax per year. Businesses must report gross sales, taxable sales, exempt sales, and the total tax collected. A collection allowance allows businesses to keep 2.5% of the tax collected (up to $30 per return) as compensation for timely filing.

Payments can be made via electronic funds transfer (EFT), credit card, or check. Late filings result in a 10% penalty of the tax due (minimum $50) plus interest, which accrues daily. To avoid penalties, businesses should set up reminders and automate payments where possible.

Corrections or Adjustments

Errors in a sales tax return can occur due to miscalculations or incorrect surtax rates. If a mistake is discovered after filing, businesses must correct it promptly. The Florida Department of Revenue allows adjustments through an amended return, submitted using Form DR-15 (Sales and Use Tax Return) for the same reporting period as the original filing. If additional tax is due, interest accrues from the original due date.

Adjustments can also arise when businesses issue refunds to customers for previously taxed sales. If a refund includes sales tax, the business can claim a credit on a future return instead of filing an amended return. Documentation—such as credit memos, refund receipts, or customer acknowledgments—is required to support the claim. Businesses handling large volumes of refunds should maintain a ledger of tax adjustments to ensure compliance in case of an audit.

Penalties for Late or Inaccurate Filing

Failing to file a sales tax return on time or submitting incorrect information can lead to financial penalties.

Late filings result in a 10% penalty of the unpaid tax, with a minimum charge of $50 per return, even if no tax is due. Interest is also assessed on overdue payments, calculated using the floating interest rate set by the Florida DOR, which is updated twice a year. Businesses that repeatedly miss deadlines may face audits or revocation of their sales tax permit. Knowingly underreporting sales tax can result in additional penalties, including a 50% penalty for fraudulent intent under Florida law.

Recordkeeping Requirements

Businesses must retain records for at least three years as required by Florida law. These records should include sales invoices, receipts, exemption certificates, and any documentation for deductions or adjustments. If a business claims tax-exempt sales, it must have valid exemption certificates on file.

The DOR has the authority to audit businesses to verify compliance. Inadequate records can lead to estimated tax assessments based on industry averages or prior sales data, often resulting in higher tax liabilities. Businesses should conduct periodic internal reviews to ensure records are accurate and up to date.