Florida Sales Tax Basics for Orlando Business Owners
Making payments to a governing body for the sale of certain goods and services is sales tax. Since 1949, the State of Florida has required business owners to collect and remit sales tax for specific business activities. Outlined in Chapter 212 of the Florida Statutes, this law can have serious consequences for business owners in Orlando, FL when it is violated.
Orlando Business Activities with Sales Tax Requirements
Prior to registering your business with the State of Florida, our tax attorneys in Orlando, FL recommend finding out if your business activities will require you to collect and remit sales tax. If you have registered your business with the State of Florida, working with an experienced tax professional can help ensure you are properly charging and paying sales tax for your business activities.
This list features some activities that will require a Florida-based business to collect and remit Sales Tax:
• Retail sales of taxable items
• Producing or manufacturing goods that will be sold at retail
• Service warranty contract sales
• Short-term living accommodation rentals, including:
o Beach rentals
o Motel/hotel rooms
o Timeshare resorts
o Travel parks
o Vacation homes
• Property rentals, leases, and licenses, including:
o Commercial office space
• Tangible personal property repairs or alterations
• Taxable service providers, including:
o Investigative and crime protection services
o Interior cleaning services (nonresidential)
o Pest control services (nonresidential)
• Admission charges for entertainment, recreation or sports venues
Businesses collecting over $1,000 in sales tax annually are required to file monthly sales tax reports (on or before the 20th). Florida Sales Tax is reported with Form DR-115. The Florida Department of Revenue’s website features an online portal so you can electronically file and pay sales tax. Businesses that file and pay on time can get a credit up to $30. Businesses that file and pay late with get a 10% penalty is applied, and a floating interest rate is also applied to under or late sales tax payments. Further penalties can be charged when your return is incomplete.
Tips for Filing Florida Sales Tax
The State of Florida can assess penalties for being late for incomplete sales tax reporting. Here are a few filing tips to ensure you stay compliant:
• Don’t miss a deadline (on or before 20th of each month)
o Set reminders
o If the 20th falls on a weekend or holiday, pay early
• Compute sales tax correctly
o Don’t forget county surtax
o Don’t include tax collected in gross sales (this increases the amount you owe)
• Complete the entire form
• Hire a tax professional to help with delinquent sales tax
He is the founder and Managing Partner of J. David Tax LawSM. He is the winner of the 2019 Ultimate Tax Attorney awarded by the Jacksonville Business Journal. This award recognizes law firms and attorneys who show exemplary professional talent and skill while demonstrating superior client care, leadership, charitable concern, and civic engagement. Jonathan graduated from Chapman University School of Law. He has practiced law since 2011.
We provide tax solutions for our clients who have IRS and state tax debts, unfiled returns, audits, etc. We advise you on future compliance that enables your individual or business tax problems to be behind you for good.