Understanding Admissions

Hey there, fellow tax enthusiasts! I hope you’re doing well and continuing to grow your business.

In this Florida Tax Tip, I’d like to spotlight an increasingly important topic: Sales Tax and Online Transactions.

Florida, like many other states, has adapted its tax laws to account for the rise in e-commerce. If you sell products online—whether through your own website or third-party platforms like Amazon or Etsy—you may be required to charge, collect and remit Florida sales tax.

But it is not so simple! Gone are the days when the “physical presence” standard could be used to determine nexus to establish the seller’s reporting obligation in a state.

Let’s unpack some essentials:



1.   📈 Economic Nexus Threshold:

Since July 1, 2021, remote sellers who make over $100,000 in sales to Florida customers annually must register to collect and remit sales tax—even if they have no physical presence in the state.



2.   🛒 Marketplace Facilitators:

In most cases, the tax is due at the time of the transaction, on an accrual basis. However, for events at certain facilities, the tax is due on the first day of the month following the event.



3.  🧾 Taxable vs. Nontaxable Goods:

Most tangible products are taxable, but digital goods and services may or may not be, depending on specific criteria.+



4. 📂 Documentation and Recordkeeping:

You should retain all invoices and proof of tax collection for audit protection, especially for out-of-state transactions.

Failing to report Use Tax is a red flag during FDOR audits which can result in a significant tax liability. Let us know if you'd like help reviewing your online sales exposure, AND stay tuned for the next Tax Tip, which discusses the USE tax obligations of the in-state purchaser. 

Until next time — stay tax sharp, stay compliant, and keep those online sales tax-compliant!

Nydia, The Florida Tax Girl
(Saving Floridians from sales tax confusion, Tip at a time.)