The Florida Annual Resale Certificate for Sales Tax is a vital document that allows businesses to make tax-exempt purchases for items intended for resale. By using this certificate, registered dealers can buy goods or services without paying sales tax, provided they plan to resell those items. To begin utilizing this certificate, click the button below to fill out the necessary form.
The Florida Annual Resale Certificate for Sales Tax is an essential tool for businesses engaging in the resale of goods and services. This certificate allows registered dealers to make tax-exempt purchases, which is crucial for maintaining healthy profit margins. Available for download and printing, the certificate can be accessed as often as needed, making it convenient for business owners. Notably, the requirement for a signature has been removed, simplifying the process even further. However, it’s important to understand that this certificate is only valid for purchases intended for resale, not for personal use or items that will not be resold. To qualify for the Annual Resale Certificate, businesses must first register as sales and use tax dealers with the Florida Department of Revenue. Once registered, they will receive their Annual Resale Certificate each year, which expires on December 31. This ensures that businesses remain compliant and up-to-date with their tax obligations. The certificate can cover a variety of transactions, including the resale of tangible personal property and certain services, but it cannot be used for items that will not be resold. Understanding the correct usage of this certificate is vital to avoid penalties associated with misuse, which can include civil and criminal charges. With clear guidelines and accessible resources, the Florida Annual Resale Certificate serves as a valuable asset for businesses navigating the complexities of sales tax regulations.
Flor id a An n u a l Re sa le Ce r t ifica t e
for
Sa le s Ta x
GT-800060
R. 04/19
FLO R ID A AN N U A L RE SA LE CE R T IF ICA T E S F OR SA LE S TA X
•Florida Annual Resale Certificates for Sales Tax are available for downloading and printing. You can download or print your certificate as often as needed.
•Signature requirements have been discontinued. The certificate user declares that the items or services being purchased will be resold when the certificate or the certificate number is issued to a seller to make tax-exempt purchases.
Re gist r a t ion
If your business will have taxable transactions, you must register as a sales and use tax dealer before you conduct business in Florida. You can register to collect and report tax through the Department's website. The site will guide you through an application interview that will help you determine your tax obligations. If you do not have Internet access, you can complete a paper Florida Business Tax Application (Form DR-1). After your application is approved, you will receive a Certificate of Registration (Form DR-11) and a Florida Annual Resale Certificate for Sales Tax (Form DR-13).
Note: The information in this brochure applies only to the Florida Annual Resale Certificate for Sales Tax (“Annual Resale Certificate”). It does not apply to the Florida Annual Resale Certificate for Communications Services Tax (see Florida’s Communications Services Tax brochure GT-800011).
An Annual Resale Certificate will allow you to make tax-exempt purchases or rentals of property or services for resale. Examples are:
•Resale or re-rental as tangible personal property.
•
Re-rental as commercial real property.
Re-rental as transient rental property.
Resale of services.
Incorporation into and sale as part of the repair of tangible personal property by a repair dealer.
Incorporation as a material, ingredient, or component part of tangible personal property that is being produced for sale by manufacturing, compounding, or processing.
W h e n N ot t o U se y ou r AN N U A L RE SA LE CE R T IF ICA T E
An Annual Resale Certificate may not be used to make tax-exempt purchases or rentals of property or services that will be used:
•But not resold or re-rented.
Before selling or renting the goods.
By your business or for personal purposes.
See the chart provided in this publication listing types of businesses and examples of items that you may purchase or rent tax-free. If you have specific questions about your business, visit your nearest service center or call Taxpayer Services.
AN N U A L RE SA LE CE R T IF ICA T E S e x p ir e e a ch y e a r on D e ce m be r 3 1
As long as you are a registered sales and use tax dealer and you are conducting business, an Annual Resale Certificate will be issued to you each year. Certificates issued to new business locations beginning in mid-October will be effective from the date they are issued through the following calendar year. Each November, Annual Resale Certificates for the following calendar year will be available on the
Florida Department of Revenue, Florida Annual Resale Certificate for Sales Tax, Page 1
Department's website for electronic or paper filers. If you file paper sales and use tax returns, your certificate will also be mailed to you with your annual coupon book or your paper return.
Using your tax account information, you may download and print your certificate. Go to floridarevenue.com/taxes/printcertificate. Easy-to-follow steps for printing your certificate can be found when selecting the applicable button on the website. If you need additional assistance, contact Taxpayer Services at 850-488-6800.
I n a ct iv e Re gist e r e d D e a le r s a n d U se Ta x D e a le r s
Annual Resale Certificates are issued only to dealers who have a valid sales tax account and whose registration status is active, which means the business is open for business and collecting and remitting sales tax to the Department of Revenue. A registered dealer who is on inactive status or has only a use tax account will not be issued an Annual Resale Certificate.
Con solida t e d Re gist r a t ion s
Purchasers who file returns on a consolidated basis (80-code account numbers) may use a copy of the current Annual Resale Certificate for either the consolidated registration number (80-code number) or the active location reported under the consolidated registration number. Selling dealers may accept either copy from the purchaser.
Pu r ch a se r ’s Re spon sib ilit y
As a purchaser it is your responsibility to ensure that goods purchased using your Annual Resale Certificate are purchased for resale. If the goods purchased for resale are later used (not resold), you are responsible for reporting and paying use tax and surtax on the items.
Pe n a lt y
There are civil and criminal penalties for intentional misuse of an Annual Resale Certificate. Resale fraud is a third-degree felony subject to a 200 percent penalty. Anyone who, for the purpose of evading tax, uses an Annual Resale Certificate or signs a written statement claiming an exemption knowing that tax is due on the property or services at the time of purchase is subject to civil and criminal penalties. As part of the audit process, the Department routinely examines resale transactions and Annual Resale Certificates to ensure they are legitimate purchases for resale.
Se lle r ’s Re spon sib ilit y
Other businesses may buy goods from you tax exempt. Business owners who purchase goods for resale must provide you a copy of their current Annual Resale Certificate. You should not accept an Annual Resale Certificate if you know or have reason to believe that the goods are purchased for reasons other than those stated on the certificate. For example, a resale certificate from a car dealership should not be accepted for the purchase of office supplies or similar items not normally sold by car dealerships.
Se llin g D e a le r Lia bilit y
A selling dealer who accepts a copy of an Annual Resale Certificate will not be held liable for tax on the transaction if it is later determined the purchaser was not an active, registered dealer at the time of the transaction.
Sig n a t u r e N ot Re qu ir e d
A signature is not required on the annual resale certificate. The user certifies that the items or services purchased will be resold when the certificate or the certificate number is issued to a seller to purchase items and services tax-exempt.
Florida Department of Revenue, Florida Annual Resale Certificate for Sales Tax, Page 2
Type of
Purchases that may
qualify for resale
Purchases that are generally taxable
business
exemption
Disposable “take-out” food
Dishes, flatware, kitchen utensils, cleaning supplies, office
Restaurants
containers, paper napkins,
Bars
plastic eating utensils, and
equipment, office supplies, delivery vehicles, kitchen equipment,
credit card machines, and menus
beverages
Items for resale to
Items used in serving customers on-site, including shampoo,
Barber shops
customers for off- premises
use, including shampoos,
brushes, cosmetics, cleaning supplies, hair dryers, curling irons,
Beauty salons
beautician chairs, scissors, combs, shears, office supplies, and
hair tonics, brushes, and
office equipment
cosmetics
Car dealers
Tires, batteries, auto parts,
seat covers, auto paint,
Hand and power tools, machinery, tape, sandpaper,
Auto repair shops
antifreeze, nuts, bolts, and
lubricants, solvents, rags, cleaning supplies, office supplies
oil available for resale to
and equipment, free loaner vehicles, delivery vehicles,
Service stations
customers or incorporated
wreckers, lifts, and diagnostic equipment
into repairs
Florists
Fertilizers, flowers, shrubs,
Plant nurseries
potting soil, and garden
Hoses, garden tools, lawn mowers, rakes, office equipment,
tools for resale to
supplies used in day-to-day operations, and delivery vehicles
Landscape
customers on an itemized
gardeners
invoice
Soft drinks, candy, beer,
t-shirts, hats, kitchen
Convenience
supplies, office supplies,
Cash registers, business equipment, cleaning supplies, office
household supplies,
stores
supplies, gas pumps, credit card machines, and ATMs
cleaning supplies, and
motor oil available for
resale to customers
Items intended for resale
rather than use in business
Items for use in day-to-day store operations, including pet food,
Pet shops
operations, including pet
pet litter, pet dishes, cleaning supplies, office supplies, and office
food, pet litter, brushes,
equipment
and pet dishes
Service providers,
None. These types of
businesses are generally
for example:
considered to be the end
attorneys,
Electronics, service vehicles, appliances, office equipment and
users of products they use
accountants,
supplies, books, stationery, computer hardware or software,
architects, doctors,
in providing service to
bandages, mouthwash, toothbrushes, toys, and bedding
customers and generally
dentists, daycare
do not qualify for resale
centers
exemption.
Florida Department of Revenue, Florida Annual Resale Certificate for Sales Tax, Page 3
D o cu m e n t in g Sa le s f or Re sa le
AS A SELLER you must document each tax-exempt sale for resale using one of the following methods. You may select a different method to document each sale for resale.
Method 1 – Obtain a copy of your customer’s current Annual Resale Certificate. You can accept paper or electronic copies. Maintain copies of the certificates (paper or electronic) for three years.
Method 2 – For each sale, obtain a transaction authorization number using your customer’s Annual Resale Certificate number. You do not need to maintain a copy of your customer’s Annual Resale Certificate number when you maintain a transaction authorization number for a tax-exempt sale for resale.
Phone: Dial 877-357-3725 and enter the customer’s Annual Resale Certificate number.
Online: Go to floridarevenue.com/taxes/certificates. Enter sales tax certificate numbers for verification.
FL TAX mobile app available for iPhone, iPad, Android phones and tablets, and Windows phones.
Find our free app in your device’s app store.
Download the free FL TAX mobile app from the app store on your mobile device. Enter your 13-digit sales tax certificate number in the Seller field. Your number will be validated each time you verify a customer’s certificate number. Once your number is validated, the app will store it for future use.
Enter your customer’s Annual Resale Certificate number in the Buyer field.
A Valid or Not Valid response will be provided immediately. If the buyer’s certificate number is valid, you will receive a transaction authorization number. This number is for a single purchase only, and is not valid for any other purchases made by the same customer.
A verification response report will be stored in the app if your device’s memory space permits. This report can be emailed for easy record storage. The report displays the following information:
Date and time of transaction
Buyer’s name (when their certificate is valid)
Buyer’s sales tax or tax exemption certificate number
Verification response short-text indicator (Pass or Fail)
Response details including transaction authorization number (when valid)
Florida Department of Revenue, Florida Annual Resale Certificate for Sales Tax, Page 4
Keep a record of all verification response reports to document your tax-exempt sales.
The telephone system, the online system, and the mobile app will each issue a transaction authorization number or alert the seller that the purchaser does not have a valid resale certificate. The transaction authorization number is valid for that purchase only, and is not valid for other resale purchases made by the same purchaser. As a seller, you must get a new transaction authorization number for each resale transaction.
Method 3 – Each calendar year, obtain annual vendor authorization numbers for your regular customers.
Online: Go to floridarevenue.com/taxes/certificates. You can upload a batch file for customer certificate verification and retrieve that file 24 hours after submission.
You do not need to maintain a copy of your customer’s Annual Resale Certificate when you maintain a vendor transaction authorization number each calendar year for that customer.
Information, forms, and tutorials are available on the Department’s website at floridarevenue.com.
To speak with a Department representative, call Taxpayer Services at 850-488-6800, Monday through Friday, excluding holidays.
To find a taxpayer service center near you, go to floridarevenue.com/taxes/servicecenters.
For written replies to tax questions, write to:
Taxpayer Services MS 3-2000
Florida Department of Revenue
5050 W Tennessee St
Tallahassee FL 32399-0112
Subscribe to Receive Updates by Email from the Department
Subscribe to receive emails for due date reminders, Tax Information Publications (TIPs), or proposed rules at floridarevenue.com/dor/subscribe.
Florida Department of Revenue, Florida Annual Resale Certificate for Sales Tax, Page 5
Filling out the Florida Annual Resale Certificate form is a straightforward process. Once completed, this form allows you to make tax-exempt purchases or rentals of property or services intended for resale. Follow these steps carefully to ensure accuracy.
Once you have filled out the form and presented it to the seller, you can proceed with your tax-exempt purchases. Keep a copy of the certificate for your records, as it may be necessary for future transactions or audits.
What is the Florida Annual Resale Certificate for Sales Tax?
The Florida Annual Resale Certificate for Sales Tax allows registered businesses to make tax-exempt purchases of items or services intended for resale. This certificate can be downloaded and printed multiple times as needed. It simplifies the process of purchasing items without incurring sales tax, provided that those items will be resold. The certificate is valid until December 31 of each year and must be renewed annually.
How do I obtain a Florida Annual Resale Certificate?
To obtain a Florida Annual Resale Certificate, you must first register as a sales and use tax dealer with the Florida Department of Revenue. This can be done online or via a paper application. Once your registration is approved, you will receive your Annual Resale Certificate along with a Certificate of Registration. If you have an active registration status, you will receive your certificate automatically each year.
Are there any restrictions on using the Annual Resale Certificate?
Yes, the Annual Resale Certificate cannot be used for purchases that will not be resold or rented. For instance, if you buy items for personal use or for your business operations rather than for resale, you cannot use the certificate. Misuse of the certificate can lead to civil and criminal penalties, including substantial fines.
What happens if my business status changes?
If your business becomes inactive or if you only hold a use tax account, you will no longer be eligible for an Annual Resale Certificate. It is crucial to maintain an active sales tax account to continue making tax-exempt purchases. If your registration status changes, you must notify the Department of Revenue and ensure compliance with tax obligations.
What is the responsibility of the purchaser when using the Annual Resale Certificate?
As a purchaser, it is your responsibility to ensure that items bought with the Annual Resale Certificate are indeed for resale. If you later use those items instead of reselling them, you must report and pay the appropriate use tax. Keeping accurate records of your purchases is essential to avoid penalties.
How can sellers verify the validity of an Annual Resale Certificate?
Sellers can verify the validity of an Annual Resale Certificate through several methods. They can accept a copy of the certificate from the purchaser, obtain a transaction authorization number via phone or online, or request annual vendor authorization numbers for regular customers. It is important for sellers to document each tax-exempt sale for resale to avoid potential tax liabilities.
When filling out the Florida Annual Resale Certificate form, individuals often make several common mistakes that can lead to complications. One of the most frequent errors is failing to properly register as a sales and use tax dealer before attempting to use the certificate. Registration is essential, as it ensures that the business is recognized by the Florida Department of Revenue and is compliant with tax obligations. Without this registration, any attempts to use the resale certificate may be invalid.
Another mistake involves using the certificate for purchases that do not qualify for tax exemption. The Annual Resale Certificate is specifically intended for items that will be resold or re-rented. If a business uses the certificate to purchase goods for personal use or for items that will not be resold, they may face penalties. It is crucial to understand the types of purchases that qualify under the certificate's guidelines to avoid misuse.
Many individuals overlook the expiration date of the Annual Resale Certificate. Each certificate expires on December 31 of the year it was issued. Businesses must ensure they are using a valid and current certificate. Failing to do so can lead to unintentional tax liabilities on purchases made after the certificate has expired.
Additionally, some users mistakenly believe that a signature is required on the form. However, the Florida Department of Revenue has discontinued the signature requirement. The user certifies that the items purchased will be resold simply by issuing the certificate. This misunderstanding can lead to unnecessary delays or complications when presenting the certificate to sellers.
Finally, purchasers often neglect to maintain proper documentation for their tax-exempt purchases. It is essential to keep records of all transactions made under the Annual Resale Certificate. This includes obtaining copies of the certificate from buyers and documenting each sale. Without proper documentation, businesses may struggle to prove the legitimacy of their tax-exempt purchases during audits, leading to potential fines or penalties.
The Florida Annual Resale Certificate is an important document for businesses engaged in the resale of goods or services. Alongside this certificate, there are several other forms and documents that businesses may encounter. These documents help ensure compliance with tax regulations and facilitate smooth transactions. Below is a list of commonly used forms and documents that often accompany the Florida Annual Resale Certificate.
Understanding these documents is crucial for businesses operating in Florida. Each form plays a specific role in ensuring compliance with tax laws and facilitating tax-exempt transactions. Proper documentation helps prevent potential issues during audits and supports the smooth operation of business activities.
When filling out the Florida Annual Resale Certificate form, it's important to follow specific guidelines to ensure compliance and avoid issues. Here’s a list of things you should and shouldn’t do:
Many believe that a signature is necessary on the Annual Resale Certificate. However, this is no longer the case. The user simply declares that the items or services purchased will be resold, making the signature requirement obsolete.
While the Annual Resale Certificate does expire on December 31 each year, as long as you remain a registered sales and use tax dealer, you will receive a new certificate annually. This means you can continue to make tax-exempt purchases for resale.
It is important to note that the Annual Resale Certificate cannot be used for purchases that will not be resold or re-rented. Using it for personal items or items for business use that are not intended for resale is prohibited.
Only businesses registered as sales and use tax dealers can receive the Annual Resale Certificate. If your business has taxable transactions, you must register before you can use the certificate.
In reality, there are significant penalties for the intentional misuse of the Annual Resale Certificate. This includes civil and criminal penalties, which can lead to serious consequences for those who engage in resale fraud.
In fact, a selling dealer who accepts a valid Annual Resale Certificate will not be held liable for tax if it is later determined that the purchaser was not an active registered dealer at the time of the transaction.
This is a common misunderstanding. The Annual Resale Certificate is strictly for items purchased for resale. If you use the goods for personal purposes, you are responsible for paying the applicable taxes.
Key Takeaways on the Florida Annual Resale Certificate for Sales Tax: