Sales Tax Fundamentals
Get up to speed on the basics of sales tax
How to Use a Florida Resale Certificate
byNovember 14, 2016
If you buy products to resale in the state of Florida, you can avoid paying sales tax on your purchase by using a Florida resale certificate. You should always keep in mind that you should only use your resale certificate to buy items you intend to resale–any other use of the resale certificate by an individual is usually considered unlawful.
If You Wish to Use a Florida Resale Certificate
Using a resale certificate in Florida is pretty straightforward. After you have registered for your Florida sales tax permit, you can print one out from your account at the Florida Department of Revenue website. You won’t need to sign the printout, because it will be unique for your business and serves as certification that all of the items or services purchased will be resold or rented.
Also keep in mind that if you hold a Florida sales tax permit, you are required to collect sales tax from your Florida buyers.
If You are Presented with a Florida Resale Certificate
If you are a retailer with nexus in Florida and your buyer presents you with a resale certificate, you are required to document each tax-exempt sale using one of the following three methods:
- Obtain a paper or electronic copy of the customer’s Annual Resale Certificate and keep it on hand for three years.
- For each sale, obtain a transaction authorization number using your customer’s Annual Resale Certificate number. You’ll have to register each transaction by phone (877–357–3725), Florida’s Certificate Verification site, or with the FL Tax Mobile app. Each time you do this, you will be issued a transaction authorization number that is valid for that purchase only.
- Obtain an annual vendor authorization number for your regular customers each calendar year from the Certificate Verification site, enter your seller information, upload a batch file for verification, and retrieve that file 24 hours after submission.
Keep in mind as both a buyer and a seller that Florida resale certificates expire each year on December 31st. As long as you’re a registered dealer and are actively conducting business, a Florida Annual Resale Certificate for Sales Tax will be issued to you each year.
I hope this has clarified the process of using resale certificates in Florida.
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