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Annual Resale Certificate for Sales Tax

Businesses that register with the Department of Revenue to collect sales tax are issued a Florida Annual Resale Certificate for Sales Tax (Annual Resale Certificate). The certificate allows business owners or their representatives to buy or rent property or services tax-free (when purchases or rentals will be resold or re-rented).

Examples of purchases or rentals that you may make without paying sales and use tax include:

  • Items that become a component part of a product you sell (for example: nails, fabric, and wood that are incorporated into a chair).
  • Items resold as tangible personal property and services that are resold.
  • Services that will be resold as part of your regular business operations.
  • Rentals that will be re-rented as real property or tangible personal property.

If you are not yet registered, visit our registration page to find out if your business activities are subject to tax. If your business will have taxable transactions, you must register with the Department of Revenue before you begin conducting business in Florida.

Online registration is free. The site will guide you through an application interview that will help you determine your tax obligations. After your application is approved, you will receive a Certificate of Registration (Form DR-11) and a Florida Annual Resale Certificate for Sales Tax (Form DR-13).

What's New for 2015 Florida Annual Resale Certificates for Sales Tax

  • Florida Annual Resale Certificates for Sales Tax are available for downloading or printing.
  • Signatures have been discontinued. The certificate user certifies that the items or services purchased will be resold when the certificate is issued to a seller to make tax-exempt purchases.
  • Use Your Annual Resale Certificate Correctly

    You are responsible for using your Annual Resale Certificate correctly. You may not use your certificate to make tax-exempt purchases or rentals of property or services that will be:

    • Used in your business but not resold or re-rented.
    • Used before selling or renting the goods.
    • Used by your business or for personal purposes. (For example: furniture, office equipment, computers, or supplies.)

    View a chart that includes types of businesses and examples of items that you may buy or rent tax-free. If you have specific questions about your business, contact your local service center or Taxpayer Services.

    Type of business Purchases that may qualify
    for resale exemption
    Purchases that are generally taxable
    Restaurants
    Bars
    Disposable “take-out” food containers, paper napkins, plastic eating utensils, and beverages Dishes, flatware, kitchen utensils, cleaning supplies, office equipment, office supplies, delivery vehicles, kitchen equipment, credit card machines, and menus
    Barber shops
    Beauty salons
    Items for resale to customers for off-premises use, including shampoos, hair tonics, brushes, and cosmetics Items used in serving customers on-site, including shampoo, brushes, cosmetics, cleaning supplies, hair dryers, curling irons, beautician chairs, scissors, combs, shears, office supplies, and office equipment
    Car dealers
    Auto repair shops
    Service stations
    Tires, batteries, auto parts, seat covers, auto paint, antifreeze, nuts, bolts, and oil available for resale to customers or incorporated into repairs Hand and power tools, machinery, tape, sandpaper, lubricants, solvents, rags, cleaning supplies, office supplies and equipment, free loaner vehicles, delivery vehicles, wreckers, lifts, and diagnostic equipment
    Florists
    Plant nurseries
    Landscape gardeners
    Fertilizers, flowers, shrubs, potting soil, and garden tools for resale to customers on an itemized invoice Hoses, garden tools, lawn mowers, rakes, office equipment, supplies used in day-to-day operations, and delivery vehicles
    Convenience stores Soft drinks, candy, beer, t-shirts, hats, kitchen supplies, office supplies, household supplies, cleaning supplies, and motor oil available for resale to customers Cash registers, business equipment, cleaning supplies, office supplies, gas pumps, credit card machines, and ATMs
    Pet shops Items intended for resale rather than use in business operations, including pet food, pet litter, brushes, and pet dishes Items for use in day-to-day store operations, including pet food, pet litter, pet dishes, cleaning supplies, office supplies, and office equipment
    Service providers, for example:
    attorneys, accountants, architects, doctors, dentists, daycare centers
    None. These types of businesses are generally considered to be the end users of products they use in providing service to customers and generally do not qualify for resale exemption Electronics, service vehicles, appliances, office equipment and supplies, books, stationery, computer hardware or software, bandages, mouthwash, toothbrushes, toys, and bedding

    You might buy an item tax-exempt intending to resell it, but then use the item in your business or for personal use. In that case you must report and pay use tax on the item. Use tax is calculated at the same rate as sales tax. Report use tax on your sales and use tax return.

    There are criminal and civil penalties for the fraudulent use of a resale certificate.

    Making Purchases with Your Annual Resale Certificate

    You may provide a copy of your current Annual Resale Certificate to the seller when you buy or rent property or services that you intend to resell or re-rent as part of your business. Do not give out your original resale certificate.

    Accepting an Annual Resale Certificate from Another Business

    Other businesses may buy goods from you tax-exempt. Business owners who purchase goods for resale must provide you with a copy of their current Annual Resale Certificate.

    You should not accept an Annual Resale Certificate if you know or have reason to believe the goods are purchased for reasons other than those stated on the certificate. For example, an Annual Resale Certificate from a car dealership should not be accepted for the purchase of office supplies or similar items not normally sold by car dealerships.

    As a seller you must document tax-exempt sales for resale using one of three methods:

    • Obtain a copy of your customer's current Annual Resale Certificate
    • Use the Certificate Verification System to obtain a transaction authorization number using your customer's Annual Resale Certificate number for each tax-exempt sale.
    • Use the Certificate Verification System to obtain annual vendor authorization numbers for your regular customers each calendar year.

    Read our Annual Resale Certificate for Sales Tax brochure for more information about this and other methods of documenting sales for resale.

    Annual Resale Certificates expire each year on December 31

    As long as you are a registered dealer and you are conducting business, a Florida Annual Resale Certificate for Sales Tax will be issued to you each year. Certificates issued to new business locations beginning in mid-October will be issued for the following calendar year.

    Annual Resale Certificates Available Online

    Each November, Annual Resale Certificates for the following calendar year will be available on our website. If you file paper sales and use tax returns, your certificate will be mailed to you with your annual coupon book or your paper return. Using your tax account information, you may download and print your certificate. Go to www.myflorida.com/dor, select "more e-Services" and then select "Print an Annual Resale Certificate." Login using one of the following methods:

    • Use your business partner and a portion of your certificate number (contract object number); or,
    • Use your e-Services user ID and password.

    Your business partner number and certificate number are printed on your Certificate of Registration. Your contract object number is an 8-digit number beginning with the 5th place of the 13-digit certificate number.

    Example: Certificate number: 95-80123456780-2
    Contract object number: 12345678

    If you file for all your business locations on a consolidated sales tax return, login using the contract object number within your consolidated certificate number. This will allow you access to Annual Resale Certificates for all your locations that are reported under the consolidated number (use tax only accounts are excluded).

    If you need assistance, contact Taxpayer Services at 800-352-3671.

    Frequently Asked Questions about the Annual Resale Certificate for Sales Tax

    Making Purchases with the Annual Resale Certificate

    Question:    If I buy from a vendor on a regular cash basis, do I have to present a copy of my Annual Resale Certificate each time I make a purchase?
    Answer:       No. However, some businesses have internal procedures requiring you to present your certificate each time you make a purchase for resale.
    Question:    If I have a use tax number, will I receive an Annual Resale Certificate?
    Answer:       No. If you are registered to remit use tax you will not receive an Annual Resale Certificate because you cannot make tax-exempt purchases for resale.

    Accepting an Annual Resale Certificate from Another Business

    Question:    Do I need to circle one of the bulleted options on the Annual Resale Certificate to validate the certificate?
    Answer:       No. The business representative who presents the Annual Resale Certificate when buying items for resale, does not need to show the purpose of the transaction. The bullets listed on the certificate simply provide examples of valid types of resale transactions.
    Question:    Does the address on the Annual Resale Certificate have to match the address of the customer buying the merchandise?
    Answer:       No. The address on the certificate does not need to match the location address of the purchaser. However, the certificate must have the proper business name and the certificate must be current.
    Question:    Can a selling dealer accept an Annual Resale Certificate that has only the owner's name on it and not the d/b/a name?
    Answer:       Yes.
    Question:    When an on-account customer is required to pay by cash or credit card (ceases to be an on-account customer) for a short time during a year and then resumes being an on-account customer, does the selling dealer (a wholesaler) need to get another copy of the Annual Resale Certificate?
    Answer:       No. The initial copy of the certificate is sufficient. The selling dealer can continue to sell to this customer tax-exempt for resale on either a charge account or C.O.D. basis.

    Multiple Accounts or Locations

    Question:    Are vendors who sell items that are tax-exempt required to get an Annual Resale Certificate from their purchasers?
    Answer:       No. A vendor does not have to get a certificate from the purchaser for sales of items specifically exempt by law.
    Question:    If an item is tax-exempt because of its usage (e.g., fertilizer bought for agricultural use), is the purchaser required to submit a copy of his or her Annual Resale Certificate?
    Answer:       No. If the item is tax-exempt under a specific exemption based on its usage and is not for resale, the purchaser must provide the seller an exemption certificate.

    Tax-exempt Items

    Question:    Are vendors who sell items that are tax-exempt required to get an Annual Resale Certificate from their purchasers?
    Answer:       No. A vendor does not have to get a certificate from the purchaser for sales of items specifically exempt by law. However, the invoice should identify the exempt items.
    Question:    If an item is tax-exempt because of its usage (e.g., fertilizer bought for agricultural use), is the purchaser required to submit a copy of his or her Annual Resale Certificate?
    Answer:       No. If the item is tax-exempt under a specific exemption based on its usage and is not for resale, the purchaser should give the seller an exemption certificate. Form DR-97 has a suggested format for a blanket certificate of exemption.

    Other

    Question:    How can I verify a Consumer's Certificate of Exemption?
    Answer:      
    • Seller Certificate Verification – Verify resale or exemption certificates using a customer's sales tax certificate number:
      • Phone: 877-FL-RESALE(877-357-3725)
      • Online: Go to www.myflorida.com/dor and select "More e-Services" and then "Verify resale and exemption certificates"
      • Mobile App: Florida Tax (FL Tax) mobile app for iPhone, iPad, Android phones and tablets, Windows Phone
    • If you obtain an authorization number for each tax-exempt sale, or for all sales to a specific customer, you do not need to keep a copy of the customer's Florida Annual Resale Certificate.
    Question:    What documentation is required to exempt sales when the purchaser is an out-of-state dealer who does not have a Florida Annual Resale Certificate for Sales Tax?
    Answer:       See Rule 12A-1.0015(3), Florida Administrative Code (F.A.C), regarding sales to nonresident dealers.

    Resources

    Read our Florida's sales and use tax web page. Click on that page's industry tab to read publications for specific types of businesses.

    Find out about other taxes that a business may be required to collect and/or pay.