The place to find business sales tax information

— as well as solutions, services and jobs!

We have nexus in FL and HQ in CO. Do we collect sales tax on FL drop ship orders?

Full Question: We have nexus (sales person in Fl) in Florida and we are HQ in Parker, Colorado. Do we collect sales tax from our customers that are not located in Florida but drop shipping their order to Florida?

Brought to you by:

NOTE: This site does NOT provide client-specific tax advice. Information provided is general and may NOT apply to your particular situation. Do NOT take any action based upon any site content until you have received advice from an independent, qualified tax practitioner with whom you have a professional-client relationship. All content is subject to our disclaimer.

Answer:

Diane Yetter photoIf you have nexus in a state and have registered to collect sales tax, you are required to collect sales tax on all taxable sales delivered into that state. If you are drop shipping goods to your customer's end customer and your customer is reselling the goods, you may be able to use their home state resale certificate which will be recognized by FL as long as the goods are not originating from within FL. If you are shipping goods from CO into FL on behalf of your customer, and your customer has provided you with a resale certificate from their state, you should be able to exempt the transaction into FL. If however, your customer has not provided you with any type of resale exemption documentation for any state, you should collect tax on all shipments of taxable goods into FL.

(Not quite what you need? View SALES TAX QUESTIONS home page to access other topics or use site-wide SEARCH in upper right)

Disclaimer:

Access to any portion of SalesTaxSupport.com is contingent upon your acceptance of our Terms of Use. This Web Site and content provided by STS Publishing, LLC and its third party content providers, including, but not limited to information, documents, forms, comments, advice and opinions, is for informational purposes only, and is not a substitute for professional advice, nor does the use of this Web Site constitute a professional-client relationship. The Web-Site also includes advertisements, directory listings, job postings and links to third party web sites, all of which are provided for your convenience only and in no way constitute a referral, endorsement, or warranty by SalesTaxSupport.com of any product or service provided by such third parties. All content is provided “as is” with no guarantee regarding accuracy, suitability, or timeliness. Your reliance on any content accessed on or through the Web Site, or on any product or service provider is strictly at your own risk.