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The Florida Annual Resale Certificate for Sales Tax is a vital tool for businesses engaged in the resale of goods and services. This certificate allows registered dealers to make tax-exempt purchases, provided the items will be resold. It simplifies the buying process by eliminating the need for a signature, as users simply declare their intent to resell. To obtain this certificate, businesses must first register as sales and use tax dealers with the Florida Department of Revenue. Once registered, they can download and print the certificate as needed. The Annual Resale Certificate is valid for one year, expiring on December 31, and is automatically issued to active dealers each year. It's important to understand the limitations of this certificate; it cannot be used for items that will not be resold or are intended for personal use. Additionally, businesses must ensure they are compliant with the rules surrounding its use, as misuse can lead to significant penalties. This article will explore the key aspects of the Florida Annual Resale Certificate, including registration, eligible purchases, and the responsibilities of both purchasers and sellers.

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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.

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•

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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.

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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

➤ PDF File

Form Specifications

Fact Name Details
Availability Florida Annual Resale Certificates for Sales Tax can be downloaded and printed as often as needed.
Signature Requirement There is no longer a requirement for a signature on the certificate. Users declare that items will be resold.
Registration Requirement Businesses must register as a sales and use tax dealer to conduct taxable transactions in Florida.
Expiration Annual Resale Certificates expire each year on December 31.
Purchaser's Responsibility It is the purchaser's responsibility to ensure that items bought with the certificate are for resale.
Penalties There are civil and criminal penalties for misuse of the Annual Resale Certificate, including resale fraud.
Selling Dealer Liability Selling dealers are not liable for tax if they accept a valid resale certificate from an active dealer.
Governing Law The Florida Annual Resale Certificate is governed by Florida Statutes, Chapter 212, regarding sales and use tax.

Florida Annual Resale Certificate: Usage Guidelines

Filling out the Florida Annual Resale Certificate form is a straightforward process. This certificate allows businesses to make tax-exempt purchases for items or services intended for resale. Follow the steps below to complete the form accurately.

  1. Visit the Florida Department of Revenue website to download the Florida Annual Resale Certificate form (GT-800060).
  2. Print the downloaded form.
  3. In the first section, enter your business name as it appears on your sales tax registration.
  4. Provide your business address, including city, state, and zip code.
  5. Fill in your sales tax registration number. This number is assigned after you register as a sales and use tax dealer.
  6. Indicate the type of business you operate by selecting the appropriate option from the list provided.
  7. Leave the signature section blank, as a signature is no longer required.
  8. Review all entered information for accuracy.
  9. Save or print the completed form for your records.

Once you have filled out the form, you can use it for making tax-exempt purchases related to your business. Ensure that you keep a copy for your records and provide it to sellers when making qualifying purchases.

Your Questions, Answered

What is the Florida Annual Resale Certificate for Sales Tax?

The Florida Annual Resale Certificate allows registered businesses to make tax-exempt purchases of items or services that will be resold. This certificate is essential for businesses involved in retail, rental, or service industries. It simplifies the purchasing process by eliminating the need to pay sales tax on items intended for resale.

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. You can complete this registration online or by submitting a paper Florida Business Tax Application (Form DR-1). Once registered, you will receive your Annual Resale Certificate, which is valid for one year and must be renewed annually.

Can I use the Annual Resale Certificate for all purchases?

No, the Annual Resale Certificate cannot be used for all purchases. It is specifically intended for items or services that will be resold or re-rented. You cannot use it for personal use or for items that will not be resold. Misuse of the certificate can lead to penalties.

When does the Annual Resale Certificate expire?

The Annual Resale Certificate expires each year on December 31. If you remain an active registered dealer, you will receive a new certificate each year. New business locations registered after mid-October will have their certificates effective from the date of issuance through the following calendar year.

What are the responsibilities of the purchaser using the Annual Resale Certificate?

As a purchaser, it is your responsibility to ensure that any items bought using the Annual Resale Certificate are indeed for resale. If you use these items for personal purposes or other non-resale activities, you must report and pay the applicable use tax. Misuse can result in significant penalties.

What should sellers do when accepting an Annual Resale Certificate?

Sellers should document each tax-exempt sale for resale by obtaining a copy of the purchaser's current Annual Resale Certificate. They can accept both paper and electronic copies. Sellers must also ensure that the certificate is valid and that the items purchased align with the intended use stated on the certificate.

Common mistakes

  1. Incorrect Business Registration Status: One common mistake is failing to ensure that the business is an active sales tax dealer. If the registration status is inactive, the Annual Resale Certificate cannot be issued. This oversight can lead to tax liabilities on purchases that were assumed to be tax-exempt.

  2. Misuse of the Certificate: Another frequent error involves using the Annual Resale Certificate for items or services that will not be resold. This includes personal use or purchases made before selling the goods. Such misuse can result in penalties, as the law requires that the certificate be used strictly for resale purposes.

  3. Failure to Document Transactions: Sellers often neglect to document tax-exempt sales properly. Each transaction must be supported by either a copy of the customer's current Annual Resale Certificate or a transaction authorization number. Without proper documentation, businesses may face audits and potential tax liabilities.

  4. Ignoring Expiration Dates: Annual Resale Certificates expire each year on December 31. A common oversight is using an expired certificate for purchases. It is crucial to check the validity of the certificate before accepting it to avoid complications with the Department of Revenue.

Documents used along the form

The Florida Annual Resale Certificate for Sales Tax is a crucial document for businesses engaged in buying and selling goods. It allows registered dealers to make tax-exempt purchases for items intended for resale. However, there are several other forms and documents that often accompany this certificate, each serving a specific purpose in the sales tax process. Understanding these documents can help streamline transactions and ensure compliance with state regulations.

  • Florida Business Tax Application (Form DR-1): This form is used to register as a sales and use tax dealer in Florida. Businesses must complete this application before conducting taxable transactions.
  • Certificate of Registration (Form DR-11): After registering, businesses receive this certificate, confirming their status as a registered sales tax dealer in Florida.
  • Annual Resale Certificate for Communications Services Tax: This certificate is specifically for businesses involved in communications services and is distinct from the general resale certificate for sales tax.
  • Transaction Authorization Number: Sellers can obtain this number for each tax-exempt sale to document that the purchaser has a valid resale certificate. It is valid for a single transaction only.
  • Verification Response Report: Generated through various verification methods, this report documents the validity of a buyer's resale certificate and includes transaction details.
  • Consolidated Registration Number (80-code): This number is used by businesses that file returns on a consolidated basis, allowing them to use a single resale certificate across multiple locations.
  • Tax Exempt Certificate: This document is utilized by non-profit organizations or other exempt entities to make tax-exempt purchases, distinct from resale certificates.
  • Sales Tax Return: Businesses must file this return to report sales tax collected and remit it to the state. This is essential for maintaining compliance.
  • Purchase Order: A document that authorizes a purchase transaction between a buyer and a seller, often used to outline the specifics of the sale.
  • Invoice: This document details the transaction between the seller and buyer, including item descriptions, quantities, prices, and applicable taxes, if any.

Understanding these documents and their purposes can significantly aid in managing sales tax responsibilities in Florida. Each form plays a vital role in ensuring that businesses comply with state regulations while facilitating smooth transactions. Keeping these documents organized and accessible can help prevent potential issues during audits or transactions.

Similar forms

The Florida Annual Resale Certificate form is an important document for businesses engaged in resale transactions. It shares similarities with several other documents that also facilitate tax-exempt purchases. Here’s a list of six documents that are comparable to the Florida Annual Resale Certificate:

  • California Resale Certificate: Like Florida's version, this certificate allows businesses in California to purchase items tax-free for resale. It requires the seller to accept it as proof that the buyer intends to resell the purchased goods.
  • New York Resale Certificate: This document serves a similar purpose in New York, enabling businesses to buy goods without paying sales tax, provided those goods are intended for resale.
  • Texas Resale Certificate: In Texas, this certificate allows businesses to make tax-exempt purchases of items they plan to resell, aligning with the intent of Florida's Annual Resale Certificate.
  • Illinois Resale Certificate: This document in Illinois functions similarly, permitting businesses to buy items without sales tax when they are for resale, just like the Florida certificate.
  • Ohio Resale Certificate: Ohio's version allows businesses to make tax-exempt purchases for resale. It requires the seller to accept this certificate as evidence of the buyer's intent to resell.
  • Georgia Resale Certificate: In Georgia, this certificate allows for tax-exempt purchases for resale purposes, similar to the Florida Annual Resale Certificate, ensuring compliance with tax regulations.

Dos and Don'ts

When filling out the Florida Annual Resale Certificate form, it’s important to follow certain guidelines to ensure compliance. Here’s a list of things you should and shouldn’t do:

  • Do download or print your certificate as often as needed.
  • Do ensure your business is registered as a sales and use tax dealer before conducting business.
  • Do use the certificate only for items or services that will be resold.
  • Do keep a copy of the certificate for your records for at least three years.
  • Do verify the purchaser’s Annual Resale Certificate number for each transaction.
  • Don’t use the certificate for personal purchases or for items that will not be resold.
  • Don’t accept an Annual Resale Certificate if you suspect it’s being misused.
  • Don’t forget that certificates expire each year on December 31.
  • Don’t assume that a signature is required on the form; it is not.
  • Don’t ignore the penalties for misuse of the certificate; they can be severe.

Misconceptions

  • Misconception 1: The Florida Annual Resale Certificate must be signed.

    • In fact, signature requirements have been discontinued. The user simply certifies that the items purchased will be resold.

  • Misconception 2: The certificate is only valid for a single use.

    • The certificate can be downloaded and printed as often as needed, making it a flexible tool for businesses.

  • Misconception 3: All businesses automatically receive an Annual Resale Certificate.

    • Only registered sales and use tax dealers receive this certificate. Businesses must register before conducting taxable transactions.

  • Misconception 4: The Annual Resale Certificate can be used for any purchase.

    • This certificate is specifically for items that will be resold or re-rented. It cannot be used for personal use or items not intended for resale.

  • Misconception 5: The Annual Resale Certificate expires only if the business closes.

    • These certificates expire annually on December 31. A new certificate is issued each year as long as the business remains active.

  • Misconception 6: There are no penalties for misuse of the certificate.

    • There are civil and criminal penalties for intentional misuse. This includes using the certificate for items that will not be resold.

  • Misconception 7: Only large businesses need to worry about compliance.

    • All businesses, regardless of size, must comply with the rules surrounding the use of the Annual Resale Certificate.

  • Misconception 8: Sellers are always liable for tax if a buyer misuses the certificate.

    • Sellers will not be held liable if they accept a valid certificate from an active dealer, even if the buyer misuses it later.

  • Misconception 9: You can use the certificate for services rendered.

    • The certificate can only be used for tangible personal property. Services typically do not qualify for tax exemption under this certificate.

Key takeaways

Key Takeaways for Using the Florida Annual Resale Certificate Form

  • The Florida Annual Resale Certificate for Sales Tax can be downloaded and printed multiple times as needed.
  • Signature requirements have been removed; users declare that purchases made with the certificate will be for resale purposes.
  • Annual Resale Certificates expire on December 31 each year, and new certificates are issued to active registered dealers.
  • It is the purchaser's responsibility to ensure that items bought with the certificate are intended for resale; misuse can result in penalties.
  • Sellers are not liable for tax if they accept a valid Annual Resale Certificate, provided they have no reason to doubt its legitimacy.