As a business based in Florida, we are confronting the sales tax situation with our new website. The solution we have decided on is that when a user enters Florida as State on the registration page a "required" new field labled "County" pops up on the form. It is a simple drop down list of all the counties in Florida. The user simply picks the appropriate county and that's it. When checking out the site does a lookup of the tax rate for the appropriate county and adds the tax to the invoice.
I get pretty lucky as my web host already has a sales tax program in the shopping cart for every state In my latest research and speaking with our book keeper. You only have to charge sales tax from the county that you are in. You don't have to charge sales tax based on the location of the person that is purchasing just your city/county, etc. Hope it helps. Good luck
I would think not. Take the following for example. If your business is in section "A" you charge tax for that section, right? If your customer lives in say...Section "C" They are only going to pay the sales tax of your buisness location listed in section "A". Even the BOE confirms that the charge of sales tax is the tax of which the business is located. Just like if a customer is in New York, they are not going to pay New York sales tax, they are going to pay the sales tax in your location, right? To me, it seems the state of FL has made things difficult. How many tax rates do you have? If they are giving you issues with sales from website, can't you break the purchase down per zip code then? Seems like a pain, really. Let's be honest...Unless your making millions from website, I really would not worry about to much right from the get go. We all know the first few years of buisness is a right off, loss, etc. After all take a look at all the eBay sellers, do you think they are paying sales tax?
Best of luck
Let me guess--you haven't called the FL DOR yet, have you?
For a web biz in Florida, you charge sales tax according to the county in which the goods are received.
Chafu, above, has a good system.
As you say, Tahoe, it is not simple. And you are right that your liablity for undercollecting might be small. However, I think
the DOR can levy fines for those who ignore the legal way of doing things.
In all seriousness, it is worth a toll free call to the DOR to get the skinny right from them.
drronin has it right. It IS cumbersome and tricky.
We are (very) small business owners in Florida. It's a lot of work being legit and official.
We do only internet sales on eBay mostly.
This website is full of informational links, especially at the bottom:
But this table clearly states you charge the tax of the county you are shipping to:
Also, you can lookup the sales tax rate by address on this site:
We are thinking of just charging a flat 7% rate and then charging case-by-case or "eating" the additional 0.5% that may be applicable in some counties.
Since we use eBay it can be tricky to change the sale amount once the item is purchased.
Tax on shipping? I saw in a thread above that it is charged if there's no local pickup option. Does this mean if we offered local pickup (whether or not they choose to use it) that we could not charge tax on shipping?
So much to learn.