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My CA company drop-ships to a dealer's customer in FL where we do not have nexus. Is their CA resale permit acceptable for all interstate and intrastate sales?

Full Question: I am drop shipping product to a dealer's customer. The dealer's customer is located in Florida. My dealer and I are both headquartered in California. My firm has no nexus to Florida, but my dealer may or may not have nexus. Is it necessary to request a Florida resale permit from my dealer when I drop ship to Florida, or is the California resale permit I have on file for my dealer acceptable for all interstate and intrastate sales?

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Diane Yetter photoIf you are shipping product direct to Florida from outside of Florida and you do not have nexus in Florida, then you do not have an obligation to collect Florida sales tax. However, it is advisable to obtain appropriate resale documentation from your dealers for states that you ship to in case it is later determined that you did have nexus. Florida will accept your dealer's home state resale certificate as documentation for resale as long as the inventory is shipped from outside of Florida using a common carrier. If however, the inventory is shipped from within Florida or using your own vehicles, then Florida sales tax will be due unless you have received a Florida resale certificate.

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