Whether you’re an independent contractor or an owner of a construction firm, doing business in Florida means being knowledgeable about sales tax reporting. In this state, every storage, purchase, rental, and admission is taxable unless it falls under an exempt status.
So, how do you file a sales tax return? Our comprehensive guide below explains everything you need to know about the sales tax filing process.
What Is a Sales Tax Return?
A sales tax return is what your business has to pay for selling goods and services throughout the state. Clients pay the sales tax on the services and products they buy from your company. Your business must file taxes with all relevant governing bodies using the sales tax reporting process to avoid monetary penalties and legal problems.
Who Files Sales Tax Returns?
Any business with a sales tax license in Florida is required to submit a sales tax return to the state. That includes companies with $0 returns for the filing period.
Do all businesses have to register to collect sales tax? Most do, including enterprises that do one of the following:
- Offer rentals for short-term living accommodations
- Offer taxable items for sale
- Repairs on personal property
- Sell service warranty contracts
How To File a Sales Tax Return in Florida
Complete the following to file a sales tax return:
Gather Your Business Tax Documentation
The first step in the sales tax filing process is gathering your documentation, which includes:
- Total sales, or how much you’ve earned for a reporting period
- Sales tax collected, or how much tax you’ve gotten from clients on taxable sales
- Exempt sales, or resale transactions and services that are exempt from sales tax
- Returns and allowances affecting the total sales amount
- Location-specific sales data, if you’re working in more than one jurisdiction
Enter and Submit Your Sales Data
To file your taxes in Florida, make a profile for your business with the state’s Department of Revenue. Look for the button for the DR-15 Sales and Use Return form.
From there, enter your company’s sales data for the selected filing period. You’ll need to have your contact information, gross sales data, and exemptions. You’ll also calculate the tax due for your services and goods; Florida’s sales tax rate is 6%.
Pay Taxes Owed
After filing your returns, you’ll have to pay taxes owed for that period. Ensure your payment amount matches your calculated liability.
In Florida, sales tax return payments are due on the first day of each month after each reporting period. They are late after the 20th day.
Need Help With Tax Compliance Reporting? Turn to Miyares Group, L.L.C.
At Miyares Group, L.L.C., our accountants answer questions like “How does sales tax reporting work?” and “What is a sales tax return?” Our CPA firm in Miami, Florida offers comprehensive tax return preparation solutions for construction companies and contractors. With our help, you can improve the accuracy of your sales tax return, regardless of the complexity of your situation.
For more information about the sales tax filing process or to schedule a consultation, contact Miyares Group, L.L.C. today!