Outline
The Florida Annual Resale Certificate for Sales Tax is an essential tool for businesses that engage in the resale of goods and services within the state. This certificate allows registered dealers to make tax-exempt purchases, streamlining the process of acquiring inventory without incurring sales tax. One of the most significant changes to this certificate is the discontinuation of signature requirements, simplifying the declaration that items will be resold. To utilize this certificate, businesses must first register as sales and use tax dealers, which can be done online or via a paper application. Once registered, dealers receive their Annual Resale Certificate annually, with the current certificate expiring on December 31 each year. This certificate can be used for various types of purchases, including tangible personal property, commercial real property, and services intended for resale. However, it is crucial for businesses to understand when not to use the certificate, as misuse can lead to severe penalties. Furthermore, the responsibility lies with the purchaser to ensure that items bought with the certificate are genuinely intended for resale. The Florida Department of Revenue provides resources and guidance to assist businesses in navigating the requirements and responsibilities associated with the Annual Resale Certificate, ensuring compliance and facilitating smooth transactions.
Sample - Florida Annual Resale Certificate Form
Florida Department of Revenue, Florida Annual Resale Certificate for Sales Tax, Page 1
Flor ida An n ua 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.
Regist ra 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 he n N ot to Use your An n ua l Re sa le Ce r t ifica 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 nu a l Re sa le Ce r t if ica t e s expir e each year on D e cem ber 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
GT-800060
R. 04/19
Florida Annual Re sa le Ce r t ificat e
for
Sales Ta x
Florida Department of Revenue, Florida Annual Resale Certificate for Sales Tax, Page 2
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 na ct ive Regist er e d Dealers a nd Use Tax D e a ler 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.
Consolida t ed Regist ra t ions
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.
Purcha ser ’s Responsibilit 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 nalt 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.
Seller ’s Responsibilit 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.
Selling Deale 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.
Signat ure N ot Required
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 3
Type of
business
Purchases that may
qualify for resale
exemption
Purchases that are generally taxable
Restaurants
Bars
Disposable “take-out”
food
containers, paper
napkins,
plastic eating
utensils, and
beverages
Dishes, flatware, kitchen utensils, cleaning supplies, office
equipment, office supplies, delivery vehicles, kitchen
equipment,
credit card machines, and menus
Barber shops
Beauty salons
Items for resale to
customers for off-
premises
use, including
shampoos,
hair tonics,
brushes, and
cosmetics
Items used in serving customers on-site, including shampoo,
brushes, cosmetics, cleaning supplies, hair dryers, curling
irons,
beautician chairs, scissors, combs, shears, office
supplies, and
office equipment
Car dealers
Auto repair shops
Service stations
Tires, batteries, auto
parts,
seat covers, auto
paint,
antifreeze, nuts,
bolts, and
oil available for
resale to
customers or
incorporated
into repairs
Hand and power tools, machinery, tape, sandpaper,
lubricants, solvents, rags, cleaning supplies, office supplies
and equipment, free loaner vehicles, delivery vehicles,
wreckers, lifts, and diagnostic equipment
Florists
Plant nurseries
Landscape
gardeners
Fertilizers, flowers,
shrubs,
potting soil, and
garden
tools for resale to
customers on an itemized
invoice
Hoses, garden tools, lawn mowers, rakes, office equipment,
supplies used in day-to-day operations, and delivery vehicles
Convenience
stores
Soft drinks, candy, beer,
t-shirts, hats, kitchen
supplies, office supplies,
household supplies,
cleaning supplies, and
motor oil available for
resale to customers
Cash registers, business equipment, cleaning supplies, office
supplies, gas pumps, credit card machines, and ATMs
Pet shops
Items intended for resale
rather than use in business
operations, including pet
food, pet litter, brushes,
and pet dishes
Items for use in day-to-day store operations, including pet
food,
pet litter, pet dishes, cleaning supplies, office supplies,
and office
equipment
Service providers,
for example:
attorneys,
accountants,
architects, doctors,
dentists, daycare
centers
None. These types of
businesses are
generally
considered to
be the end
users of
products they use
in
providing service to
customers and
generally
do not qualify
for resale
exemption.
Electronics, service vehicles, appliances, office equipment
and
supplies, books, stationery, computer hardware or
software,
bandages, mouthwash, toothbrushes, toys, and
bedding
Florida Department of Revenue, Florida Annual Resale Certificate for Sales Tax, Page 4
D ocum e nt in g Sale s for Resa 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 5
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.
Form Information
| Fact Name | Details |
|---|---|
| Availability | Florida Annual Resale Certificates for Sales Tax can be downloaded and printed as needed. |
| Signature Requirement | There is no longer a requirement for a signature on the certificate; users certify that items will be resold. |
| Registration Requirement | Businesses must register as sales and use tax dealers before conducting taxable transactions in Florida. |
| Expiration | Annual Resale Certificates expire each year on December 31, but new certificates are issued annually to active dealers. |
| Purchaser's Responsibility | It is the purchaser's duty to ensure goods bought with the certificate are for resale; misuse can lead to tax penalties. |
| Seller's Liability | Sellers accepting a resale certificate are not liable for tax if the purchaser is later found to be inactive. |
| Governing Law | Florida Statutes, Chapter 212 governs the use of Annual Resale Certificates for Sales Tax. |
Detailed Guide for Filling Out Florida Annual Resale Certificate
Filling out the Florida Annual Resale Certificate form is a straightforward process that ensures you can make tax-exempt purchases for resale. After completing the form, you can use it to buy items or services without paying sales tax, as long as they are intended for resale. Here’s how to fill out the form step by step.
- Visit the Florida Department of Revenue website to download the Florida Annual Resale Certificate form (GT-800060).
- Open the downloaded form on your device or print it out for easier access.
- Enter your business name in the designated field at the top of the form.
- Provide your business address, including city, state, and zip code.
- Fill in your sales tax registration number. This number is essential for verifying your business’s tax status.
- Indicate the type of items or services you plan to purchase for resale. Be specific to avoid any confusion.
- Review the information you entered for accuracy. Ensure that all fields are filled correctly.
- Since a signature is not required, you can skip that step. The form is valid without a signature.
- Save the completed form if you filled it out electronically or keep the printed version in a safe place for your records.
After you complete these steps, you can use your Annual Resale Certificate to make tax-exempt purchases. Keep it handy for any transactions where you intend to resell the items or services. Always ensure that you are compliant with the rules regarding the use of this certificate to avoid any potential penalties.
Obtain Answers on Florida Annual Resale Certificate
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What is the Florida Annual Resale Certificate for Sales Tax?
The Florida Annual Resale Certificate for Sales Tax allows businesses to make tax-exempt purchases of goods or services that they intend to resell. This certificate is crucial for businesses that engage in taxable transactions, enabling them to avoid paying sales tax on items that will be resold.
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How can I obtain the Annual Resale Certificate?
You can download and print the Florida Annual Resale Certificate from the Florida Department of Revenue's website. There are no restrictions on how many times you can download or print the certificate. If you prefer a paper application, you can complete a Florida Business Tax Application (Form DR-1) if you do not have internet access.
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Are there any signature requirements for the Annual Resale Certificate?
No, the signature requirement has been discontinued. The user simply certifies that the items or services purchased will be resold when using the certificate.
-
When does the Annual Resale Certificate expire?
The Annual Resale Certificate expires each year on December 31. As long as your business remains an active sales and use tax dealer, you will receive a new certificate each year. For new business locations registered after mid-October, the certificate will be effective from the date of issue through the following calendar year.
-
What types of purchases qualify for tax exemption under this certificate?
Purchases that qualify for tax exemption include:
- Resale of tangible personal property
- Re-rental of commercial or transient rental property
- Resale of services
- Incorporation into repairs of tangible personal property
- Components used in manufacturing or processing for sale
-
What happens if I misuse the Annual Resale Certificate?
Misusing the Annual Resale Certificate can lead to serious consequences. There are civil and criminal penalties for intentional misuse, which can include a third-degree felony charge for resale fraud. If you use the certificate to purchase items for personal use or purposes other than resale, you may be responsible for paying the applicable use tax.
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What is the seller's responsibility when accepting an Annual Resale Certificate?
Sellers must ensure that the purchaser provides a current Annual Resale Certificate. If a seller has reason to believe that the goods are not being purchased for resale, they should not accept the certificate. For example, a car dealership should not accept a resale certificate for office supplies.
-
How can I verify a customer's Annual Resale Certificate?
You can verify a customer's Annual Resale Certificate using several methods:
- Obtain a transaction authorization number via phone or online.
- Use the FL TAX mobile app to validate the certificate number.
- Maintain annual vendor authorization numbers for regular customers.
Each method ensures that you document tax-exempt sales accurately.
Common mistakes
Filling out the Florida Annual Resale Certificate form can be straightforward, but many people make common mistakes that can lead to complications. One frequent error is failing to ensure that the business is properly registered as a sales and use tax dealer. Without this registration, the certificate cannot be used for tax-exempt purchases. It's crucial to complete the registration process before attempting to use the resale certificate.
Another mistake is not verifying the active status of the sales tax account. If a business is marked as inactive, it will not receive an Annual Resale Certificate, which can result in unexpected tax liabilities. Regularly checking the status of your registration can prevent this issue.
Some individuals neglect to understand the specific types of purchases that qualify for resale. The Annual Resale Certificate should only be used for items that will be resold, not for personal use or items that will be consumed. Misusing the certificate can lead to significant penalties, so it’s important to be clear about what qualifies.
Additionally, many people forget to keep a copy of the Annual Resale Certificate on file. It’s essential to maintain records of all transactions made using the certificate. This documentation can be vital in case of an audit or if questions arise regarding the legitimacy of the resale.
Another common oversight is not obtaining a transaction authorization number for each resale transaction. This number is required to validate the purchase and must be obtained anew for each transaction. Failing to do so can result in the sale being deemed taxable.
Some users also mistakenly assume that a signature is required on the form. However, Florida has discontinued the signature requirement, and users simply need to certify that the items will be resold. This misunderstanding can lead to unnecessary delays in processing the certificate.
People often overlook the expiration date of the Annual Resale Certificate. Certificates expire annually on December 31, and businesses must ensure they have a current certificate to avoid tax liabilities. Setting reminders for renewal can help keep this on track.
Another mistake is using the resale certificate for items that are not intended for resale. For example, purchasing office supplies or equipment for personal use with the resale certificate is not allowed. Understanding the limitations of the certificate is crucial for compliance.
Some individuals may also fail to communicate effectively with sellers regarding the use of the certificate. It is important to ensure that the seller understands the purpose of the resale certificate and that they are accepting it for the correct items. Clear communication can prevent misunderstandings.
Lastly, many people neglect to seek help when they have questions. The Florida Department of Revenue offers resources and assistance for those who need clarification. Utilizing these resources can help avoid mistakes and ensure that the Annual Resale Certificate is used correctly.
Documents used along the form
The Florida Annual Resale Certificate for Sales Tax is an essential document for businesses engaged in resale activities. Along with this certificate, several other forms and documents are commonly utilized to ensure compliance with tax regulations. Understanding these documents can help streamline business operations and maintain proper tax records.
- Florida Business Tax Application (Form DR-1): This form is used to register a business for sales and use tax in Florida. It is essential for businesses that will engage in taxable transactions.
- Certificate of Registration (Form DR-11): After registering, businesses receive this certificate, which confirms their status as a sales and use tax dealer in Florida.
- Annual Resale Certificate for Communications Services Tax: This certificate is distinct from the sales tax resale certificate and is specifically for businesses involved in communications services.
- Transaction Authorization Number: This number is obtained for each tax-exempt sale for resale, allowing sellers to verify the validity of a purchaser's resale certificate.
- Verification Response Report: Generated through the verification systems, this report documents the details of a tax-exempt sale, including the transaction authorization number and the buyer's information.
- Vendor Authorization Numbers: These numbers are used annually for regular customers, allowing sellers to verify resale certificates without needing to maintain a physical copy of the certificate.
- Taxpayer Services Contact Information: This is not a form but a vital resource for businesses seeking assistance with tax-related questions or issues. It provides access to expert guidance from the Florida Department of Revenue.
By familiarizing oneself with these forms and documents, businesses can navigate the complexities of sales tax regulations more effectively. It is crucial to maintain accurate records and ensure compliance to avoid potential penalties and ensure smooth operations.
Similar forms
- Florida Business Tax Application (Form DR-1): This document is essential for any business looking to register as a sales and use tax dealer in Florida. Like the Annual Resale Certificate, it ensures that businesses are compliant with tax regulations before they engage in taxable transactions. Both forms require businesses to provide specific information about their operations and intentions regarding tax obligations.
- Certificate of Registration (Form DR-11): Once a business is registered, it receives this certificate, which confirms its status as an active sales and use tax dealer. Similar to the Annual Resale Certificate, the Certificate of Registration is crucial for conducting business and making tax-exempt purchases. Both documents serve as proof of compliance with Florida's tax laws.
- Florida Annual Resale Certificate for Communications Services Tax (Form GT-800011): While this certificate specifically addresses communications services, it shares the same purpose of allowing tax-exempt purchases for resale. Both certificates require the user to declare that the items will be resold, emphasizing the need for proper documentation when engaging in business transactions.
- Transaction Authorization Number: This number is obtained during a sale for resale and serves as verification that a purchaser holds a valid resale certificate. Like the Annual Resale Certificate, it ensures that the seller is protected from tax liability if the buyer misuses the certificate. Both processes aim to prevent misuse and ensure compliance with tax regulations.
Dos and Don'ts
When filling out the Florida Annual Resale Certificate form, follow these guidelines:
- Ensure your business is registered as a sales and use tax dealer.
- Use the certificate only for items or services that will be resold.
- Keep a copy of the certificate for your records.
- Download and print your certificate as often as needed.
- Obtain a transaction authorization number for each resale transaction.
- Verify the buyer's resale certificate number before accepting it.
Avoid these common mistakes:
- Do not use the certificate for personal purchases.
- Do not accept a resale certificate if you suspect it is being misused.
- Do not forget to document each tax-exempt sale for resale.
- Do not assume that all goods purchased with the certificate are for resale.
- Do not ignore the expiration date of the certificate on December 31 each year.
- Do not accept an Annual Resale Certificate from an inactive dealer.
Misconceptions
- Misconception 1: Annual Resale Certificates are only available once a year.
- Misconception 2: A signature is required on the Annual Resale Certificate.
- Misconception 3: You can use the Annual Resale Certificate for any purchase.
- Misconception 4: Annual Resale Certificates do not expire.
- Misconception 5: You can use an Annual Resale Certificate if your registration status is inactive.
- Misconception 6: There are no penalties for misuse of the Annual Resale Certificate.
This is incorrect. You can download or print your Annual Resale Certificate as often as needed. There is no limit on how many times you can access it.
This is false. The requirement for a signature has been discontinued. The user simply declares that the items will be resold.
This is misleading. The certificate is only valid for items that will be resold or re-rented. Using it for personal purchases or items not intended for resale is not allowed.
This is not true. These certificates expire each year on December 31. You must be an active registered dealer to receive a new certificate each year.
This is incorrect. Only active registered dealers can use the certificate. If your status is inactive, you will not receive an Annual Resale Certificate.
This is a serious misunderstanding. There are both civil and criminal penalties for intentional misuse, including significant fines and potential felony charges.
Key takeaways
Understanding the Florida Annual Resale Certificate is crucial for businesses involved in resale transactions. Here are key takeaways to help navigate this process:
- Florida Annual Resale Certificates for Sales Tax can be downloaded and printed as often as needed.
- Signature requirements have been eliminated, allowing users to declare items will be resold simply by using the certificate.
- Businesses must register as sales and use tax dealers before conducting taxable transactions in Florida.
- The Annual Resale Certificate expires each year on December 31, and new certificates are issued annually to active dealers.
- Purchasers are responsible for ensuring that goods bought with the certificate are indeed for resale; misuse can lead to penalties.
- Sellers can accept the certificate without liability, provided they have no reason to believe the purchaser is misusing it.
- Purchasers must provide a current Annual Resale Certificate to sellers for tax-exempt transactions.
- Various methods exist for documenting tax-exempt sales, including obtaining transaction authorization numbers or maintaining copies of certificates.
- Resources for assistance and additional information are available through the Florida Department of Revenue’s website and Taxpayer Services.