Sales Tax Nexus in Florida for Businesses
Navigate Florida's sales tax regulations for your business. Get a clear overview of when a tax obligation exists and how to manage the state's requirements.
A business’s connection to a state, known as nexus, determines its obligation to collect and remit sales tax. This connection has evolved from being defined by physical presence to also including economic ties. For companies selling to customers in Florida, understanding the state’s specific rules is a necessary part of compliance.
Triggers for Florida Sales Tax Nexus
A business establishes sales tax nexus in Florida through several activities. A physical presence can be created by owning or leasing real estate, such as an office or warehouse. Having employees, agents, or independent contractors conducting business activities also constitutes a physical presence. Storing inventory in the state, even through a third-party fulfillment service, and attending trade shows to solicit sales can also trigger this obligation.
Florida also has an economic nexus standard for remote sellers. This rule is triggered if a business has more than $100,000 in retail sales of tangible personal property delivered into Florida in the previous calendar year. This threshold is based on sales revenue and does not have a separate transaction count requirement.
Marketplace platforms like Amazon or Etsy are responsible for collecting and remitting Florida sales tax for their third-party sellers. Sales made exclusively through a registered marketplace facilitator do not count toward a seller’s individual $100,000 economic nexus threshold. However, if a business makes direct sales to Florida customers through its own website or other channels, those sales do count toward the threshold.
Information Required for Florida Sales Tax Registration
To register for sales tax, a business must complete the Florida Business Tax Application, Form DR-1. This form requires comprehensive details about the business and its principals to establish the tax account with the Florida Department of Revenue.
You will need to provide the following:
- Federal Employer Identification Number (FEIN)
- The legal name of the business and any “doing business as” (DBA) name
- The physical address of the business location in Florida and a separate mailing address, if applicable
- The date the business first began taxable activities in the state
- Personal information for owners or officers, including their full legal names, Social Security Numbers (SSN), driver’s license numbers, and home addresses
The Florida Sales Tax Registration Process
Florida offers two methods for filing the application: online or by mail. The online method, accessible through the Department of Revenue’s web portal, is recommended as it is faster and more secure. For those who prefer a paper filing, the completed Form DR-1 can be mailed to the address specified on the form. While online registration is free, there is a $5 fee to register by mail.
After submission, the Department of Revenue will process the application. Upon approval, the business will receive a Certificate of Registration (Form DR-11) and a Florida Annual Resale Certificate for Sales Tax (Form DR-13).
Post-Registration Responsibilities
After registering, the primary responsibility is to collect the correct amount of sales tax on all taxable transactions. This involves applying Florida’s statewide 6% sales tax rate plus any applicable local discretionary sales surtax, which varies by county. Businesses must ensure they are charging the correct combined rate based on the location of the sale.
Filing sales tax returns is another recurring obligation. The Florida Department of Revenue assigns a filing frequency—monthly, quarterly, or annually—based on the business’s volume of tax collections. Returns must be filed for every reporting period, even if no tax was collected. The sales and use tax return, Form DR-15, can be filed electronically, and it is mandatory for businesses that paid $5,000 or more in sales tax during the prior year.
Along with filing, the business must remit all collected sales tax to the state. Payments are due on the 1st and considered late after the 20th of the month following the reporting period. If the 20th falls on a weekend or a holiday, the return is due on the next business day. Florida also provides a collection allowance to businesses that file and pay on time. Businesses must also keep documentation of all sales, the tax collected, and any tax-exempt sales for at least three years.