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Sales tax when shipping out of state

sales tax when shipping out of state


Best Answer: If the purchase is not specifically tax exempt, then yes, sales tax is due on any transaction that's completed in Florida (i.e. a transaction where the seller receives payment in Florida and the buyer receives the taxable product or service in Florida).

It makes things less confusing if you always keep in mind that it is the BUYER who is being charged the sales tax, and the buyer who is paying that tax to the state. The seller (your business) is merely COLLECTING that tax from the buyer, and then passing the money on to the Department of Revenue when you file. Your certificate tells the customer that the state has authorized/required you to do that.

Florida doesn't have the authority to tax a buyer who resides in some other state, so you do not

collect florida sales tax on items shipped to customers outside of Florida. However, the state where the buyer lives may require u to withthold sales tax and remit to that state. Per Wikipedia:

"As of June 1, 2008, when products are purchased online and shipped into New York State, some retailers must charge the tax amount appropriate to the locality where the goods are shipped, and in addition, must also charge the appropriate tax on the cost of shipping and handling. The measure states that any online retailer that generates more than $10,000 in sales via in-state sales affiliates must collect New York sales tax. The cumulative gross receipts from sales to New York customers as a result of referrals by all of the seller’s resident representatives total more than $10,000 during the preceding four quarterly sales tax periods."

Category: Taxes

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