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Can I collect sales tax from customers in different states without violating tax laws in Florida? What are the requirements?
Requirements for Collecting Sales Tax from Customers in Different States
If you are selling tangible personal property at retail in Florida and making or facilitating remote sales, you are exercising a taxable privilege and are required to collect sales tax on each taxable transaction or incident [1.1]. However, if you are selling to customers in different states, you may also be required to collect sales tax in those states.
To determine whether you are required to collect sales tax in other states, you should consult the laws of each state in which you have customers. Each state has its own sales tax laws and requirements, and they can vary widely. Some states require sellers to collect sales tax if they have a certain amount of sales or transactions in the state, while others require collection based on other factors.
One way to simplify the process of collecting sales tax in multiple states is to use a sales tax automation service. These services can help you determine where you have sales tax nexus (i.e., a significant presence that triggers a sales tax collection obligation) and automatically calculate and collect sales tax on your behalf.
It is important to note that failure to collect and remit sales tax when required can result in penalties and interest, so it is important to stay up-to-date on the sales tax laws in each state where you have customers and comply with all applicable requirements [1.1].
Source(s):
Jurisdiction
Florida