Florida sales tax filing update: Marketplace facilitator laws
Florida passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective July 1, 2021.
•Amazon, eBay, and Walmart have begun this collection on July 1, 2021.
Please review general information regarding Marketplace Facilitators and how your TaxJar Sales Tax Reports support these changes here in our FAQ.
In this article, we summarize Florida’s state guidance on the following questions:
- Do I need to register for a sales tax license in Florida?
- Should I cancel my existing registration if all my sales are marketplace-collected?
- Do I need to collect sales tax on Florida sales on non-marketplace platforms?
- Do I still need to file returns in Florida?
- How do I file without paying double tax on the sales that were collected and remitted by my Marketplace?
I've never registered for a Florida license. Do I need to register for a sales tax license in this state now?
According to the state's guidance, a marketplace seller is a person who has an agreement with a marketplace provider that is a dealer under Chapter 212, F.S., and who makes retail sales of tangible personal property through a marketplace owned, operated, or controlled by the marketplace provider."
Please note, this new Marketplace Facilitator law does not change the current requirements to register for a sales tax license in Florida due to physical and/or economic nexus.
- Beginning July 1, 2021, the sales threshold will be established at $100,000.
Out-of-state dealers with no physical presence in Florida who make $100,000 or more in sales to Florida customers will be required to register and collect Florida sales and use tax. For more information, please refer to the state's notice here.
If you are a marketplace seller who has already registered due to physical presence (such as inventory stored in your Marketplace's warehouse) or you have voluntarily registered, you should remain registered, according to the DOR.
- The state has not provided clear guidance regarding this question. Therefore, we strongly recommend contacting the state directly to discuss your specific situation before canceling your registration.
Do I need to collect taxes on my Florida sales through other platforms?
Yes. If you have nexus in the state (physical or economic) and you make sales to customers in Florida on platforms outside of the marketplace that is automatically collecting and remitting, you will also need to collect tax on your end on the Florida orders that are processed on the other platforms.
Do I still need to file returns in Florida?
- If you've previously registered, the state expects you to remain registered and continue to file returns.
- If your only sales are Marketplace sales, the state may still expect you to file a zero return.
I still need to file returns in Florida. How do I do this without paying double tax on the sales that were collected and remitted by my Marketplace?
- This number consists of your marketplace sales and is for informational purposes only. You are not required to include marketplace sales in your Florida returns, so they are excluded from Gross Sales.