Why should I register to collect sales tax for another state?

When a state revenue agency discovers your customer’s untaxed purchase, it will bill the customer for the use tax, penalty, and interest. Use tax is also due when the purchaser pays sales tax, but the item is brought into a state with a higher rate. For example, if you charge sales tax at Florida’s rate, but the customer lives in a state with a higher rate, that state can bill your customer for the difference.

When your customer receives a bill, a dispute could arise over whose responsibility it is to collect the tax. Even though you may not be technically liable, you provide a service to your customers when you voluntarily register and collect tax. They do not have to worry about paying tax to the other state.

To read more! Why should I register to collect sales tax for another state? Source: InfoTaxSquare Business Documents Filing In All Fifty States!

Florida businesses: Do you have out-of-state customers?

If you have a business presence in a state, you must register with that state for tax purposes. Examples of business presence (sometimes referred to as nexus) include:

· Owning property in that state.
· Making regular deliveries of your merchandise.
· Providing repair services.
· Sending your representatives to solicit orders.
If you sell items to customers in another state, but do not have nexus, you do not have to collect sales tax on the items you sell to them. However, your customers are responsible for paying use tax on the items when they receive them.

We encourage businesses to voluntarily register with their market states to collect sales tax from out-of-state customers. If you voluntarily register to collect tax, you can help prevent your customers from receiving a bill from another state for use tax, penalty, and interest.

To read more! Florida businesses: Do you have out-of-state customers? Source: InfoTaxSquare Business Documents Filing In All Fifty States!