Florida Resale Certificate Explanation
If you own a business in Florida or do any sales in the state, chances are you’ll need a Florida Resale Certificate. Also known as the Annual Resale Certificate, this document is issued for tax purposes, and gets renewed—you guessed it—once a year.
What is a Florida Resale Certificate?
A Florida Resale Certificate is necessary for any FL business that sells items directly to consumers, or has “nexus” in the state. (“Nexus” refers to any physical presence in the state that might be used to generate sales, such as a warehouse, retail store, or even personnel.) When there’s an exchange of goods, businesses typically pay taxes—however, with a Florida Resale Certificate, you won’t be required to pay taxes on any goods re-sold in the state.
For example, if you own a restaurant, you’ll have to pay taxes when purchasing dishes, silverware and cooking equipment—all items that will all stay in-house. But you won’t have to pay taxes on to-go items (like plastic forks and paper napkins)—the items customers will take with them when they leave your restaurant.
How do I get a Florida Resale Certificate?
It’s easy! Once you register your business with the Florida Department of Revenue, you’ll automatically be issued a Florida Annual Resale Certificate for Sales Tax. Though the certificate is only valid for one calendar year, your new certificate will be renewed automatically by the state and made available online through the Florida Department of Revenue starting in November.
How do I use a Florida Resale Certificate?
Your Florida Resale Certificate allows you to forgo paying taxes on items you’ve purchased then re-sold to clients or customers. It also allows you to purchase items in bulk tax-free, so long as they are also intended for re-sale.
