Sales & Use Tax in Florida – What You Need To Know

If you’re filing your sales and use tax in Florida for the first time, you’ll want to read this.

Whether you’re new to this tax to-do or you’ve been filing for a while, it’s a good idea to learn these best practices for filing sales and use tax in Florida.

We know it can be confusing to figure out what taxes you owe, so we’re going to break it down for you in this blog.

What is Sales and Use Tax?

Sales Tax refers to the amount taxed for goods or services sold. In the state of Florida, general sales tax is 6%, which is pretty average compared to other states in the U.S. There are three types of sales tax: retail transaction tax, seller privilege tax and consumer excise tax.

Use Tax pertains to taxable items where the consumer has not already paid sales tax. For example, if you purchase an item in a state that doesn’t charge sales tax, you may need to pay use tax to your state of residence. There are two types of use tax: consumer and seller.

The Main Difference Between Sales Tax vs. Use Tax

While a merchant is responsible for collecting sales tax, a buyer is responsible for submitting use tax directly to the taxing authority.

If you are a consumer, you are probably more familiar with sales tax, as it applies to almost everything you buy unless the purchase is tax exempt.

You may not need to worry about use tax unless you make a sizable purchase in a different state, in which case you will most likely need to report it to your state taxing authority.

Ask Us About Your Sales and Use Tax Questions

Do you still have questions about sales and use tax and how it affects you as an individual or business owner?

Avoid an audit and IRS tax debt. Connect with the tax professionals at Babbitt Tax Law today. We are Southwest Florida’s premier tax attorneys.

Give us a call now at 239-300-9492.