How to Purchase Goods Tax-Free and Understand Sales Tax in Florida
Summary: This article explains the requirements for purchasing goods tax-free and the implications of selling those goods with or without tax in Florida.
Purchasing Goods Tax-Free
In Florida, a resale certificate is necessary if you plan to purchase goods for resale without paying sales tax. This certificate allows you to buy items tax-free that you intend to resell to customers.
Steps to Obtain a Resale Certificate
- Register with the Florida Department of Revenue: To obtain a resale certificate, you must first register your business with the Florida Department of Revenue.
- Complete the Application: Fill out the necessary application forms as required by the state.
- Receive Your Certificate: Once your application is processed, you will receive your resale certificate, which you can use for tax-free purchases.
Selling Goods with or Without Tax
When selling goods that you have purchased tax-free using a resale certificate, you are required to collect sales tax from your customers unless the sale is exempt.
Key Points to Consider
- Collecting Sales Tax: If you sell tangible personal property, you must charge sales tax on those sales unless the customer provides a valid exemption certificate.
- Exempt Sales: Certain sales may be exempt from sales tax, such as sales to tax-exempt organizations or certain types of goods.
Conclusion
To buy goods tax-free in Florida, you need a resale certificate, which allows you to purchase items intended for resale without incurring sales tax. When selling these goods, it is essential to understand your obligation to collect sales tax unless a valid exemption applies. For further assistance, consult the Florida Department of Revenue or a tax professional.