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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 3375
Experience:  Over 20 Years experience
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Hi, I have a corporation which is registered in Delaware.

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Hi,
I have a corporation which is registered in Delaware. I'm buying spare parts from a company in Oklahoma, for resale, who is saying I should pay the state sales tax, though the ship to address is in Florida.
I've searched FL state tax pages and there's no clear explanation on how and if I should get a tax exemption certificate. Thanks in advance! Sean..

Randalltax :

Thank you for contacting me about your Tax issue. I will work hard to help you understand the issue clearly.

Randalltax :

The state of registration of your company is not relevant.

Randalltax :

What is relevant for state sales tax is the state of delivery and whether you have a resale certificate for that state or not.

Randalltax :

Since the shipping address is in Florida, Florida sales tax must be collected on the first retail sale of the item UNLESS you have a resellers certificate so that you can collect the sales tax from your customer

Randalltax :

If you do not have a resale certificate, all it means is that you pay the sales tax on purchase and you collect sales tax from your customer. Because you would not be subject to double sales tax, when you submit payment to FL, you would deduct the amount you paid on the wholesale purchase, thereby, you would not double pay this tax.

Customer:

Thanks for yr answer. I'm exporting these goods to Europe so I can not collect taxes from my customer, as I never applied taxes on this kind of resale.

Randalltax :

Then, since you are the first retail delivery in the US, you pay the only sales tax. To avoid this, you would need a FL sales tax exemption.

Customer:

in fact, I understood that any commercial activity out of registration state are not taxable in the case of DE..is that correct?

Randalltax :

Registration is online here: http://dor.myflorida.com/dor/taxes/registration.html

Randalltax :

Your state of registration is not a factor.

Randalltax :

Otherwise every Florida company would register in any state other than FL to be exempt. It does not work that way.

Customer:

oh, ok...do you know how long this certificate takes to be issued? (approx.)

Randalltax :

So your information is not correct.

Randalltax :

I don't know but my guess is in days or weeks, not months

Customer:

ok. now I got thanks

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