Effective July 1, 2021, a new law takes effect for the collection and remittance of tax on remote sales into Florida. Those affected will be required to register with the Florida Department of Revenue (the Department) and collect, report, and remit Florida sales tax and discretionary sales surtax.
Remote Sales
Entities not located in Florida that make a substantial number of remote sales for delivery in Florida are required to register with the Department and collect and remit tax. A “substantial number of remote sales” is any number of taxable remote sales in the previous calendar year in which the sum of the total sales exceeds $100,000. A “remote sale” is the retail sale of tangible personal property ordered by mail, telephone, the internet, or other communication, from a person who received the order outside Florida and causes the property to be transported into Florida.
Marketplace Sales
Beginning July 1, 2021, marketplace providers who have a physical presence in Florida or who make or facilitate a substantial number of remote sales, as defined above, through a marketplace, are required to register with the Department and collect and remit tax.
A “marketplace provider” is a person or entity that facilitates a retail sale by a marketplace seller by listing or advertising for sale by the marketplace seller tangible personal property in a marketplace and collects payment from the customer and transmits all or part of the payment to the marketplace seller.
A marketplace provider that is required to register must also certify to its marketplace sellers that it will collect and remit the applicable Florida tax on the taxable retail sales made through the marketplace. The certification may be included in the agreement between the marketplace provider and the marketplace seller.
How to Register
Marketplace providers and entities making a substantial number of remote sales are required to register electronically and must file and remit tax electronically.
Marketplace providers and persons making remote sales who register by October 1, 2021, will not be held liable for the remittance of sales tax on untaxed remote sales made prior to July 1, 2021, unless the provider or person was under audit; had been issued a bill, notice, or demand for payment; or was under an administrative or judicial proceeding as of July 1, 2021.
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