A resale certificate is a document that allows you to avoid taxes on goods purchased for resale. It is a valuable tool for physical and online merchants that depend on purchasing and reselling goods for profit.
Do you know how to obtain a resale certificate in Florida? Read on to find out.
Florida Resale Certificate – The Basics
In Florida, state law provides that “each sale, admission, storage, or rental in Florida is taxable unless the transaction is exempt.” When you buy any taxable good from someone else, you must pay a sales tax added to the price paid for it.
If you are purchasing and reselling goods for profit, paying sales tax when buying from wholesale is not a lucrative idea. With a resale certificate, you are exempt from sales tax, as the ultimate buyer is responsible for paying the amount owed to the state.
When buying from a wholesale or supplier, you can present a copy of your current Annual Resale Certificate to claim the exemption due. Please note that this tax exemption is not applied:
- If the purchased item will not be resold or rented
- Before goods are sold or rented, or
- If the purchased item fulfills business usage or personal purposes (e.g., supplies, equipment, furniture, computers, etc.)
How to Get a Resale Certificate in Florida – In Detail
To apply for a resale certificate, you need to file Form DR-1 (Florida Business Tax Application) with the Florida Department of Revenue. Applicants have two options – to apply online or download Form DR-1, fill it out, and submit it by mail.
If you want to apply online, the first step is to visit the official website of the Florida Department of Revenue (floridarevenue.com). On the homepage, click on the “General Tax” tab.
In the “Registering Business Section,” click on “Account Management and Registration.” Once the new page opens up, click on the “Florida Business Tax Application” hyperlink. You will be redirected to a portal where you must register using a username, a valid email, and a password.
After confirming your registration, you can click on “Start New Application” to apply for a resale certificate.
Please note that you cannot apply exclusively for a resale certificate by filing Form DR-1. Depending on how you fill out the application, it will determine whether you need to file reemployment tax, communication services tax, and other tax matters.
In the application process, you will be required to provide extensive information, such as:
- Full business name
- Full business address
- Employer Identification Number (EIN)
- Contact information (telephone number, email, etc.)
- Reason for applying
- Date of first taxable activity
- Business NAICS code
- Business legal structure (e.g., corporation, LLC, partnership, etc.)
- Information about business officers (i.e., directors, managing members, grantors, personal representatives, etc.)
- Business background information
- A statement that the ultimate buyer is responsible for remitting the consumer’s use tax to the state
After filling out the entire document, you can click “Submit Application.” The processing time required for Form DR-1 is typically three days for online applications.
Applying for a Resale Certificate in Florida – Immediately Contact Jurado & Associates, P.A.
An experienced lawyer from Jurado & Associates, P.A. can help you navigate the application process and avoid costly mistakes. Contact us by calling (305) 921-0976 or emailing [email protected] to schedule a consultation.
