Sales by Non-Profit Organizations versus Purchases by Non-Profit Organizations

This one is pretty straight forward:

As it pertains to this article, we’ll define non-profit organizations as organizations that currently hold a valid/active Consumer’s Certificate of Exemption (Form DR-14) issued by the Florida Department of Revenue. These are usually issued to most schools, governments, 501(c)(3) organizations, and etc. You can review the various categories here.

Sales: Non-profit organizations must collect sales tax on their sales.

Purchases: Non-profit organizations are not required to pay sales and use tax on their purchases.

*Exception: Religious institutions and their affiliates (think of a church running a thrift store) and the federal government are exempt from charging sales tax on their sales. They are exempted both ways – exempted from charging sales tax and exempted from paying sales and use tax.

You can read more about sales and use tax exemptions for non-profit organizations at the FDOR’s site here.

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