Does Florida Charge Sales Tax on Services?
byJune 21, 2022
The majority of U.S. states require merchants to charge sales tax on tangible personal property (TPP), otherwise known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services.
Here’s what merchants need to know about taxing services in Florida.
Are services taxable in Florida?
Services in Florida are generally not taxable, with important exceptions:
- Nonresidential cleaning services
- Some labor to real property, including repair labor (fabrication of materials) and labor on commercial and free-standing residential appliances
- Communications services
- Nonresidential pest control services
- Detective, burglar protection, and other protection services
- Sale of tickets or passes to attend a trade show, exhibition, or convention
Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be taxed. For an in-depth look at Florida sales tax, TaxJar’s guide to sales tax in Florida and the Florida Department of Revenue has more details.
2023 Sales Tax Preparedness Guide
Discover sales tax trends and changes that could impact your compliance in 2023. You’ll also find helpful information on product taxability, and how to manage hitting economic nexus thresholds in new states this shopping season.Read now