Is Shared Web Hosting Services Taxable?

FDOR doesn’t require sales tax to be collected and remitted for online services (excluding detective, burglar protection, and other protection services – these are still taxed even if it’s online monitoring) . . . yea, that’s pretty much it for this question. Cheers!

 

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What proof do I need to show I shipped my sales out of Florida?

Good question, especially if you’re ever audited *gasp* and any of the below will work as proof that you shipped your sales out of Florida:

  1. Internal delivery orders listing item(s) sold, mailing address, and delivery date (with proof of expenses due to the delivery i.e. trip tickets signed by the person who delivers the item).
  2. United States Postal Service parcel post receipts with supporting documentation listing the item(s) and mailing address
  3. Common carriers’ receipts, bills of lading, or other proof of mailing address
  4. Export declaration
  5. Receipts from a licensed customs broker
  6. Proof of export signed by a customs officer.

You can read more about proof of shipping out of state (aka exports) here, under 12A-1.0015(2)(c), F.A.C.

Taxable grocery, household and medical items versus Nontaxable grocery, household, medical items

Believe it or not, there’s a small list (well, 3 pages worth which is considered a small list by FDOR) of taxable grocery, household and medical items, and nontaxable grocery, household, and medical items. This list doesn’t include every single thing that is taxable and nontaxable but it’s a start. Click here for the list.

 

I install cabinets – I gotta charge tax or what?

Quick answer: You don’t have to charge tax on the installation of ‘permanently’ installed cabinets.

I’ve never heard of temporary cabinets – but you never know.

Anytime you permanently install an item (fixture) to a building (real property) the installation is not taxable.

Real Property: Any property attached directly to land, including the land itself (which means your lawn is considered real property).

Fixture: An item that is permanently attached to real property but keeps its own identity (basically you can tell it apart from the real property). But the definition, for FDOR, does not include titled property, machinery, or equipment.

Here’s a lil more info:

If you sell cabinets only – taxable.

If you permanently install cabinets only – not taxable.

If you sell and permanently install cabinets on the same order – not taxable.

See how that works?

If you sell a fixture only – taxable.

If you permanently install the fixture only – not taxable.

If you sell and permanently install the fixture on the same order – not taxable.

You can get more information about adding to real property (aka real property improvements) here.

Is My Home/Office Cleaning Service Taxable?

Cinderella decides to take her cleaning skills to the next level and go into business for herself – but if she decides to move to Florida to do it, will she need to charge taxes on her services? You already know the FDOR’s favorite answer: It depends.

Residential Services:

If Cinderella decides to clean homes, apartments, condos, any type of sleeping accommodation buildings, she will not have to charge taxes for her cleaning services. She will have to be pay tax on her cleaning supplies though.

Non-residential Services:

If Cinderella decides to mix it up and clean offices, hotel lobbies, warehouses, any type of area where business activities are typically held, she will have to charge sales tax. However, there are three exceptions that Cinderella may want to look into:

  1. Carpet cleaning is not taxable
  2. Pressure cleaning the exterior of a building is not taxable
  3. Cleaning buildings owned by nonprofit organizations that provide their current Florida Consumer’s Certificate of Exemption (DR-14) is not taxable.

But, she’ll still need to pay taxes on her cleaning supplies.

You can get more info about the taxation of residential and non-residential cleaning services here.

The Top Reason for Bills on Motor Fuel Tax Returns

The top reason for billings on Motor Fuel Tax returns is reporting too much or not enough gallons in your ending inventory compared to what was reported as received and disbursed. Just check your numbers before you submit your report. If you started with 100 gallons in your beginning inventory, received no gallons and distributed no gallons, then you shouldn’t have an ending inventory of 75 gallons on your return. FDOR allows a small percentage in change from beginning to ending gallons due to heat and other natural/uncontrollable factors but not something huge like a 25% difference. So just check your figures when it comes to your beginning, received, disbursed, and ending inventory to eliminate a small mistake that can turn into a huge bill.