Florida has one of the lowest tax burdens in the country, being one of only seven states that do not levy an income tax. That means a large portion of its revenue comes from its general Sales Tax, which is currently 6 percent statewide, not including county sales taxes. Florida is thus very strict about enforcing its sales tax regime, requiring all applicable businesses to gather sales tax revenue from qualifying transactions and passing them on to the state. Failure to fulfill this obligation properly, even by a single missed transaction, could lead to a costly and time-consuming audit process, among other liabilities and consequences.

Before you begin business in the state, you must determine whether your activities or products are taxable. With only a few exceptions, such as groceries and medicine, Florida taxes all goods and services, including (but not limited to) the following: 

  • Selling, leasing, or licensing the use of certain tangible personal property.
  • Leasing or licensing to use commercial real property (includes management companies).
  • Repairing or otherwise altering tangible personal property.
  • Sales or admissions of certain events.
  • Renting of “transient” living or sleeping accommodations (such as a hotel room) for six months or less.
  • Selling or renting farm equipment.
  • Selling electric power or energy.
  • Selling commercial pest control services, commercial building cleaning services, or burglary and security services
  • Selling secondhand goods (which may also require dealer registration Form DR-1S)

Chances are high that your business falls under these categories, which would require you to register with the Florida Department of Revenue and obtain a Certificate of Registration (Form DR-11) and tax return forms. Most businesses are set up to file and pay sales tax quarterly, though the frequency of filing depends on the amount you collect: businesses accruing over $1,000 during the state fiscal year (July 1 thru June 30) will have to file monthly.

As a business owner, you no doubt have enough to worry about without keeping track of your sales tax obligation. But given what’s at stake – from heavy fines to criminal prosecution – you can’t afford to neglect or make errors with your filings.

With Quilca CPA by your side, you can rest assured that your sales tax obligations will be met at minimal cost and trouble. We’re familiar with all the procedures and preparations that sales tax compliance entails, and have an eye for the fine details but crucial details that are all too easy to miss. Let us handle your sale tax so you can focus on running your business. 

If you’re looking for world-class payroll services, contact (786) 310-5582 or [email protected] to speak to one of our experts.