Two types of use tax exist. Sellers use tax applies to retailers while consumer use tax applies to consumers who may be individuals or businesses. Use tax rules also apply to international purchases brought back to Florida.

What is fl use tax?

Use tax is due on the use or consumption of taxable goods or services when sales tax was not paid at the time of purchase. If you buy a taxable item outside Florida and bring it into (or have it delivered into) Florida, and you did not pay sales tax on the item, you owe use tax.

Are professional services taxable in Florida?

Services in Florida are generally not taxable.

What is exempt from sales and use tax in Florida?

Florida offers generous exemptions to manufacturers. New machinery and equipment are not subject to Florida sales tax. Repair parts and labor to that machinery and equipment are also exempt. Utilities including electricity and natural gas consumed in production are exempt from Florida sales tax.

Do you have to pay sales tax on services in Florida?

If your company is buying these types of services in Florida and not paying Florida sales tax, then the FL DOR will assess the tax, penalties, and interest on your company for not self-accruing use tax on the taxable services.

What is the sales tax for communication services in Florida?

Tax rates for Florida Communication Services Tax can be significantly higher than the Florida sales and use tax rate (e.g. 9.17% state rate and up to 8.9% local rate for telecommunication services).

Is there sales tax on real estate management services in Florida?

However, management services for use of commercial or residential property fall into a unique category of Florida law. This is because commercial and residential property rentals are subject to Florida sales tax. A real estate management company is not initially liable for the tax, but is obligated to collect for the land owner client.

Do you need a Florida business tax application?

You may also need to complete a Florida Business Tax Application ( Form DR-1 ) depending on the length of time you used the services of a PEO. If you will no longer employ individuals in the State of Florida, you must either complete the Department’s account change form online or download an Employer Account Change Form ( Form RTS-3 ).