Running an e-commerce business in Florida comes with exciting growth opportunities, but it also brings responsibilities. One of the most important is staying compliant with Florida e-commerce tax requirements. Failing to collect and remit sales tax properly can lead to costly penalties, audits, and unnecessary stress.
As a trusted Jacksonville CPA firm, Brock CPA helps e-commerce companies across Florida stay compliant, minimize risk, and keep their businesses running smoothly.
Here’s what you need to know.
What Is Sales Tax in Florida?
Sales tax is a state and local tax applied to the sale of goods and certain services. Sellers are responsible for collecting sales tax at the point of sale and remitting it to the Florida Department of Revenue.
- Florida’s statewide sales tax rate is 6%.
- Local surtaxes may apply depending on the county, making the effective rate higher.
- Certain items, such as groceries, prescription drugs, and medical equipment, are exempt.
Do E-Commerce Businesses Need to Collect Sales Tax in Florida?
Yes. If you sell taxable products online and deliver them to customers in Florida, you must collect Florida sales tax. This applies whether your business is located in Florida or out-of-state but meets Florida’s economic nexus threshold (more than $100,000 in annual taxable sales to Florida customers).
In 2021, Florida officially adopted economic nexus rules, meaning even remote sellers without a physical presence must comply. This is a crucial update for online businesses that previously believed they were exempt.
How to Register for Florida Sales Tax
To stay compliant, e-commerce businesses must register with the Florida Department of Revenue and obtain a sales tax permit. Registration can be completed online through the Department’s website.
You’ll need to provide:
- Business name and address
- Federal tax ID number
- Details about your sales activity
Once approved, you’ll receive a Certificate of Registration. Be sure to display it in your business records and on your website if applicable.
Determining the Correct Sales Tax Rate
Sales tax in Florida is destination-based, which means it’s based on the buyer’s delivery address, not the seller’s location. This requires businesses to apply the correct state and local rates to every transaction.
The Florida Department of Revenue provides a sales tax rate lookup tool to help determine the appropriate rate. Many businesses also rely on third-party software to automate this process, especially if selling across multiple states.
Filing and Remitting Florida Sales Tax
Once registered, you must file sales tax returns on a regular schedule:
- Annual, if you collect less than $1,000 in sales tax per year
- Quarterly, if you collect $1,000–$12,000 annually
- Monthly, if you collect more than $12,000 annually
Returns must include:
- Total sales
- Taxable sales
- Sales tax collected
- Exempt sales (with proper documentation)
Late filings can result in penalties and interest charges.
Sales Tax Exemptions and Deductions
Florida exempts certain transactions, including:
- Groceries
- Prescription drugs
- Medical supplies and equipment
If you sell exempt products, customers may need to provide a sales tax exemption certificate. Additionally, manufacturers and resellers may qualify for deductions that reduce taxable amounts.
Penalties for Non-Compliance
Failure to comply with Florida e-commerce tax requirements can trigger:
- Penalties of 10% of the tax due (or $50 minimum) per late return
- An additional 10% penalty per underreported transaction
- Costly audits by the Florida Department of Revenue
These consequences can quickly escalate, making proactive compliance essential.
Best Practices for Florida E-Commerce Sales Tax Compliance
- Keep detailed records of sales, tax collected, and exemptions.
- Stay current with Florida sales tax rate changes.
- Automate tax collection with e-commerce software or third-party tools.
- File on time to avoid penalties and interest.
- Consult with a local CPA who understands Florida sales tax laws and e-commerce challenges.
Partner with Brock CPA
Sales tax compliance can feel overwhelming, but you don’t have to manage it alone. At Brock CPA, we partner with Florida e-commerce businesses to simplify compliance, reduce risk, and protect profitability. From registration to filing returns, our experienced team provides guidance tailored to your business.
Call us today at 904-330-0268 or email dbrock@brockcpa.com to discuss your sales tax compliance needs with a trusted Jacksonville CPA firm.
