If you run an Ecommerce or CPG business in Florida, securing a Florida Resale Certificate is a smart move to protect your margins and streamline operations.
This certificate allows you to purchase inventory and raw materials tax-free, helping you lower upfront costs, stay competitive in pricing, and remain compliant with Florida sales tax laws.
Understanding Resale Certificates in Florida
What is a Florida Resale Certificate?
In Florida, an Annual Resale Certificate (Form DR-13) is a document issued by the Florida Department of Revenue that allows businesses to:
- Purchase goods without paying sales tax, provided these goods are intended for resale to their customers in the normal course of their business.
- Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.
The purpose is to prevent double taxation, which is once at the wholesale level and again at the point of retail sale.
However, a resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Why do you need a Florida Resale Certificate?
Obtaining a resale certificate in Florida offers several significant advantages for businesses that purchase goods for resale.
Here are some key benefits:
- Avoid Paying Sales Tax on Inventory: The most direct benefit is purchasing inventory and materials that will be resold to customers without paying Florida’s sales tax upfront.
- Maintain Competitive Pricing: By not paying sales tax on the cost of goods, businesses have more flexibility in setting competitive prices for products in the Florida market. This can be a crucial advantage, especially in price-sensitive industries.
- Legal Compliance: Possessing and using a valid resale certificate for eligible purchases ensures businesses comply with Florida’s sales tax laws and regulations to avoid penalties.
In Florida, the specific form required for a resale certificate is the Form DR-13. However, the state typically refers to it as the “Annual Resale Certificate” in its government pages.
When filling out the Annual Resale Certificate, a purchaser must include their Florida taxpayer number to identify that it is registered with the FL Department of Revenue and authorized to make tax-exempt purchases for resale.
Resale Certificate vs. Sales Tax Permit: What’s the Difference?
A Florida Sales Tax Permit authorizes your business to collect and remit sales tax on taxable sales to customers. A Florida Resale Certificate (Annual Resale Certificate), on the other hand, allows you to purchase goods tax-free from suppliers if those goods are intended for resale. To use a resale certificate, you must have an active sales tax permit.
Who Can Use a Resale Certificate in Florida?
Businesses that purchase goods for resale can use a Florida Resale Certificate. To do so, the business must actively sell taxable tangible products and hold a valid Florida Sales Tax Permit.
How to Get a Resale Certificate in Florida: A Step-by-Step Guide
Getting a resale certificate in Florida is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible: Your business must sell taxable goods or services and be registered with the FL Department of Revenue website. Only businesses with a valid Florida Sales Tax Permit can use a resale certificate.
2. Get a Florida Sales Tax Permit: If you don’t already have one, apply for a Florida Sales Tax Permit through the FL Department of Revenue website. You can only download and print the Annual Resale Certificate by logging into your FL Sales and Use Tax account. Therefore, having an account is necessary.
You can also use your certificate number and business partner number to log in and download the Annual Resale Certificate form. Those numbers can be found on the front and back of your Certificate of Registration after Florida approves your business’s application.
Need help? Read our blog: How to Get a Seller’s Permit in Florida
3. Gather Your Business Information: You’ll need basic business details to complete the resale certificate, including:
- Your business legal name and any trade names.
- Your business address and contact information.
- Your Federal Employer Identification Number (FEIN) or Social Security Number (SSN) if you’re a sole proprietor.
- Your Florida state sales tax permit number (if already obtained)
- Your business type (e.g., sole proprietorship, LLC, corporation).
4. Complete the Annual Resale Certificate: Download and fill out the Florida Annual Resale Certificate (Form DR-13) from the FL Department of Revenue’s website. Note that you can’t download the form without logging in.
You’ll present this form to your suppliers when making tax-exempt purchases. You do not need a signature on the Annual Resale Certificate (Form DR-13) itself, as presenting the certificate or its number certifies that you will resell or re-rent the items purchased.
5. Submission: No submission required in Florida. You don’t submit the resale certificate to the state. Instead, give the completed form directly to your suppliers when buying items for resale.
6. Pay Any Applicable Fees: There’s no cost to use the Annual Resale Certificate. However, you’ll need a valid Florida Sales Tax Permit. To see if there’s a cost for the permit, then you can check out our guide on Sales Tax Permit fees.
7. Understand Renewal Requirements: The name of the form matches its validity period. That means the Annual Resale Certificate expires on the last day of the year. Regardless, active and registered businesses in Florida will automatically receive a new Annual Resale Certificate each year.
This means you must maintain your Florida Sales Tax Permit, otherwise, you’ll lose access to the state’s resale certificate.
How to Use a Resale Certificate in Florida
To properly utilize your resale certificate in Florida when making tax-exempt purchases for resale, you’ll need to present a valid copy of your Florida Annual Resale Certificate to your supplier at the time of purchase.
Florida does not accept resale certificates issued by other states.
Instead, out-of-state businesses have the option to either:
- Provide a declaration to their chosen vendors in Florida to confirm that the items purchased are for resale purposes.
- Utilize the MTC Uniform Sales & Use Tax Resale Certificate.
The declaration should include details such as:
- Name and information of the dealer (address, sales tax number)
- Your name and contact information (address, phone number, and your home state sales tax permit number)
- Passport or visa number (for buyers outside of the US)
- Proof of business validity (business license or seller’s permit from your home state)
- Transaction records (invoice number, item description)
- Signature and liability agreement (including the date of transaction)
To ensure a smooth transaction, it’s best to contact and inquire with your suppliers ahead of time. Overall, this practice may also help prevent potential audit issues.
For more information regarding out-of-state resale regulations in Florida, you may read the state’s official guidelines.
Multi-Jurisdictional Resale Certificates
A standardized multi-jurisdictional resale certificate simplifies tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
Generally, there are two primary types of multi-jurisdictional resale certificates that a business operating in or selling to vendors in Florida might encounter:
- Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: This is a widely recognized form accepted by a significant number of states (though not all). Florida requires that you include your Florida Sales Tax Permit number and complete the form. You can find this form on the Multistate Tax Commission (MTC) website. According to the MTC, note that you must still provide your Annual Resale Certificate number when using the form. This allows Florida vendors to obtain an authorization number to complete the resale deal.
- Streamlined Sales Tax (SST) Certificate of Exemption: Florida is not a member of the Streamlined Sales Tax Governing Board. Therefore, while a Florida vendor might accept an SST Certificate of Exemption, they are primarily looking for a Florida Annual Resale Certificate (Form DR-13) or the Uniform Sales & Use Tax Resale Certificate. You can find more information about the SST and its member states on the Streamlined Sales Tax Governing Board website.
For a seamless transaction, it’s best to verify which form your Florida suppliers prefer. This also helps prevent any audit issues.
Responsibilities When Using or Accepting a Florida Resale Certificate
Buyer Responsibilities
You are responsible for ensuring that you use a Florida resale certificate only for purchases of goods or services you intend to resell. Using it for personal or operational items (like office supplies or equipment) is illegal and may lead to penalties.
- Florida-based buyers: Provide a fully completed Annual Resale Certificate (Form DR-13) to your suppliers for qualifying purchases.
- Out-of-state buyers: If your business has a sales tax nexus within Florida, you are generally required to register with the Florida Department of Revenue. This registration will grant you access to a Florida Sales and Use Tax Certificate of Registration (your “seller’s permit”) and a Florida Annual Resale Certificate (Form DR-13). Florida vendors often prefer the DR-13 for straightforward tax-exempt purchases.
- For out-of-state buyers who do not have a Florida DR-13:
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Multistate Tax Commission (MTC) Uniform Sales & Use Tax Resale Certificate: Florida sellers may accept the MTC Uniform Sales & Use Tax Resale Certificate from out-of-state purchasers. However, the selling Florida dealer is still required to verify the exemption by obtaining a transaction or vendor authorization number directly from the Florida Department of Revenue using the purchaser’s sales tax registration information.
- Sales to Nonresident Dealers for Export: For specific sales of tangible personal property to a nonresident dealer where the property will be transported outside Florida for resale and no other purpose, the Florida selling dealer may obtain a detailed statement from the nonresident dealer. This statement must include the nonresident dealer’s name, address, evidence of authority to do business in their home state/country, passport/visa information (for non-U.S. residents), a perjury declaration, and the purchaser’s signature. Florida law outlines this method for these specific export transactions.
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Seller Responsibilities
As a seller in Florida, accepting a resale certificate comes with a variety of responsibilities. Such as verifying and retaining proper documentation for tax-exempt sales. Additionally, you must also:
- Accept the certificate in good faith
- Ensure that you maintain proper documentation and include essential information. This includes the buyer’s name, address, and Florida sales tax certificate number (or the equivalent out-of-state sales tax ID if using the MTC certificate).Note that a signature is generally no longer required on the Florida Annual Resale Certificate (Form DR-13) itself. You must clearly establish the reason for the exemption (for resale)
- Reject the certificate if the items aren’t for resale (e.g., personal or business use)
Keep records for at least 3 years: A properly completed resale certificate is your official proof of why sales tax wasn’t collected. You must retain it in your records for at least 3 years in case of a sales tax audit by the FL Department of Revenue.
In Florida, there are 3 methods to document your transactions better:
- Retain a copy of the buyer’s Annual Resale Certificate – Paper or electronic certificates must be kept for at least 3 years.
- Obtain an authorization number – Each time you validate an Annual Resale Certificate, you obtain an authorization number. Treat it like a receipt. By choosing this option, you no longer need a copy of your buyer’s resale certificate.
- Keep an annual vendor authorization number – You can obtain this by contacting the FL Department of Revenue. This method is useful if you have regular customers, ensuring quick recurring transactions.
Frequently Asked Questions About the Florida Resale Certificate
Are There Penalties for Misusing a Florida Resale Certificate?
Yes. Intentionally misusing an Annual Resale Certificate is subject to civil and criminal penalties. Committing resale fraud leads to a 3rd degree felony with a 200% penalty. Discover more sales tax penalties via the Florida Legislature.
Does a Florida Resale Certificate Expire?
The Annual Resale Certificate (Form DR-13) expires annually on the last day of the year. However, as long as you register and keep your business active in Florida, you’ll automatically receive a new form every year.
How Do I Verify a Resale Certificate in Florida?
To validate an Annual Resale Certificate in Florida, there are 3 ways:
- Call 877-357-3725, then enter the buyer’s Annual Resale Certificate number.
- Online Verification – log in and enter the necessary information for verification.
- Use the Florida Tax Mobile App, available for Windows, iOS, and Android.
How TaxHero Can Help
You don’t have to complicate managing sales tax compliance and resale certificates in Florida. TaxHero simplifies the process. From keeping your Florida Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your resale certificate in Florida process today!