Florida Regulations 12A-1.0911: Self-Accrual Authorization; Direct Remittance on Behalf of Independent Distributors
Current as of: 2024 | Check for updates
|
Other versions
(1) Scope of Rule. This rule is intended to provide guidelines regarding the authority to self-accrue sales and use tax, as provided in Florida Statutes § 212.183 This rule is also intended to provide guidelines regarding the authority granted by Section 212.18(3)(a), F.S., to dealers that use independent sellers or distributors regarding procedures for remitting tax directly to the Department on the retail sales price charged to the ultimate consumer.
(2) Self-accrual authorization.
(a) The Department will authorize dealers to assume the obligation of self-accruing and remitting tax directly to the Department for the following purposes:
1. The apportionment of sales tax by eligible air carriers provided in Florida Statutes § 212.0598
2. The partial exemption provided in Section 212.08(9)(a), F.S., for railroad rolling stock, and parts thereof, used to transport persons or property for hire in interstate or foreign commerce and the partial exemption provided in Section 212.08(4)(a)2., F.S., for fuel used in railroad locomotives. See Fl. Admin. Code R. 12A-1.064
3. The partial exemption provided in Section 212.08(9)(b), F.S., for motor vehicles, and parts thereof, used to transport persons or property for hire in interstate or foreign commerce. See Fl. Admin. Code R. 12A-1.064
4. The partial exemption provided in Florida Statutes § 212.08(8), for vessels, and parts thereof, used to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes and the partial exemption provided in Section 212.08(4)(a)2., F.S., for fuel used in such vessels. See Fl. Admin. Code R. 12A-1.0641
5. The purchase of tangible personal property by dealers who annually purchase in excess of $10 million of taxable tangible personal property in any county for the dealer’s own use.
6. The purchase of tangible personal property by dealers who annually purchase at least $100,000 of taxable tangible personal property, including maintenance and repairs for the dealer’s own use, and the taxable status of the property will be known only when the dealer uses the property. For example, dealers whose normal trade or business characteristics require them to purchase property, maintenance, or repairs that will either become a component part of a product manufactured for sale or will be used and consumed by the dealer will know the taxable status of the property only when the property is used.
7. The purchase of promotional materials, as defined in Section 212.06(11)(b), F.S., by dealers who are unable to determine at the time of purchase whether the promotional materials used to promote subscriptions to publications will be used in Florida or exported from Florida. The seller of subscriptions to publications promoted by the promotional materials must be a registered dealer who is remitting sales tax to the Department on publications sold in Florida. The dealer purchasing and distributing the promotional materials and the seller of the promoted subscriptions to publications sold in Florida are not required to be the same entity.
8. The lease or license to use real property subject to the tax imposed by Florida Statutes § 212.031, from independent owners or lessors of real property by dealers who are required to remit sales tax electronically under Florida Statutes § 213.755
9. The lease of or license to use real property subject to the tax imposed by Florida Statutes § 212.031, by a dealer who leases or obtains licenses to use real property from a number of independent property owners who, except for the lease or license to the dealer, would not be required to register as dealers engaged in the business of leasing real property.
10. The lease or license to use real property subject to the tax imposed by Florida Statutes § 212.031, by operators of amusement machines or vending machines who lease or obtain licenses to use real property from property owners or lessors for the purpose of placing and operating an amusement or vending machine.
(b) Any person requesting authority from the Department to self-accrue and remit tax directly to the Department must:
1. File an Application for Self-Accrual Authority/Direct Pay Permit-Sales and Use Tax (Form DR-16A, incorporated by reference in Fl. Admin. Code R. 12A-1.097) with the Department, in the manner provided on the application; and,
2. Hold a valid certificate of registration for purposes of reporting sales and use tax. See Fl. Admin. Code R. 12A-1.060
(c) The Department will issue a Sales and Use Tax Direct Pay Permit to qualified applicants. The effective date of the permit is the postmark date of the application or, when the application is delivered by means other than the United States Postal Service, the date the application is received by the Department.
(d) The Department will specify on each permit the circumstances for which the dealer is authorized to self-accrue and remit sales and use tax directly to the Department. The authorized dealer is required to remit the tax directly to the Department.
(e) Any dealer that holds a valid Sales and Use Tax Direct Pay Permit may extend a copy of its permit to the selling dealer in lieu of paying tax for authorized purchases to the selling dealer.
(f) The validity of a Sales and Use Tax Direct Pay Permit may be verified by using the Department’s online Certificate Verification System at www.floridarevenue.com/taxes/certificates, by using the Department’s FL Tax mobile application, or by calling the Department’s automated nationwide toll-free verification system at 1(877)357-3725. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).
(g) Transaction authorization number issued prior to or at the point-of-sale – valid for a single transaction only. In lieu of obtaining a copy of the purchaser’s Sales and Use Tax Direct Pay Permit, the selling dealer may document the sale by requesting a transaction authorization number issued by the Department. A transaction authorization number is valid for single transaction only.
1. A “”transaction authorization number”” must be obtained by the selling dealer prior to or at the point-of-sale:
a. By using the Department’s online Certificate Verification System at www.floridarevenue.com/taxes/certificates;
b. By using the Department’s FL Tax mobile application; or
c. By calling the Department’s automated nationwide toll-free telephone verification system at 1(877)357-3725.
2. When using the Department’s online Certificate Verification System, the dealer may key up to five (5) Sales and Use Tax Direct Pay Permit numbers into the system. When using the Department’s FL Tax mobile application or the Department’s automated nationwide toll-free verification system, the selling dealer is prompted to key in a single Sales and Use Tax Direct Pay Permit number. Each system will either issue a transaction authorization number or alert the selling dealer that the purchaser does not have a valid permit. Selling dealers using the automated telephone verification system who do not have a touch-tone phone will be connected to a live operator Monday through Friday (excluding holidays) 8:00 a.m. to 5:00 p.m. (Eastern Time). Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).
3. A transaction authorization number is not valid to exempt subsequent purchases or rentals made by the same purchaser. A selling dealer must obtain a new transaction authorization number for each and every transaction.
4. The selling dealer must document the transaction authorization number on the sales invoice, purchase order, or a separate form that is prepared by either the purchaser or the selling dealer.
(h)1. Vendor authorization number for regular customers – valid for calendar year issue. In lieu of obtaining a copy of the purchaser’s Sales and Use Tax Direct Pay Permit or a Transaction Authorization Number from the Department for each sale to the permit holder, the selling dealer may obtain a Vendor Authorization Number for that permit holder. This option is available to selling dealers throughout the calendar year without limitation.
2. The “”vendor authorization number”” is a customer-specific authorization number that will be valid for all sales made to a permit holder during the calendar year.
3. To obtain vendor authorization numbers, the selling dealer may use the Department’s online Certificate Verification System at www.floridarevenue.com/taxes/certificates or send a written request to the Department. Dealers obtaining authorization numbers by submitting a written request to the Department may obtain the electronic format for sending the customer data from the Department’s web site at www.floridarevenue.com or call the Department at (850)488-3516 to obtain the electronic format.
a. The written request should be forwarded to the Florida Department of Revenue, Account Management MS #1-5730, Florida Department of Revenue, 5050 W Tennessee Street, Tallahassee, Florida 32399-0160, along with an electronic file containing a list of the dealer’s regular customers for which the dealer has a Sales and Use Tax Direct Pay Permit number on file. In response to the request, the Department will issue to the selling dealer, using the same electronic medium, a list containing a unique vendor authorization number for each permit holder.
b. The Department’s online Certificate Verification System allows the user to verify up to five Sales and Use Tax Direct Pay Permit numbers and to obtain a transaction authorization number for single sales made to each permit holder at once. The system also allows the user to upload a batch file of up to 50,000 accounts for verification and, 24 hours later, retrieve the file containing the vendor authorization numbers for all sales made to the permit holders during the calendar year.
4. The selling dealer may make tax-exempt sales to the permit holder during the period in which the vendor authorization number for that permit holder is valid. Vendor authorization numbers are valid for the remainder of the calendar year during which they are issued. However, vendor authorization numbers issued by the Department in November or December are valid for the remainder of that calendar year and the next calendar year.
(i) The expiration date of Sales and Use Tax Direct Pay Permit shall be the end of the month preceding five years from the effective date, if the effective date is on or before the 15th of the month. The expiration date shall be the end of the month that is five years from the effective date, if the effective date is after the 15th of the month. The Department will provide a renewal notice to a permit holder 60 days prior to the expiration date of a permit. Persons that fail to receive a renewal notice or that need more information regarding the notice may contact the Department at:
Central Registration
Florida Department of Revenue
P.O. Box 6480
Tallahassee, Florida 32314-6480.
(j) Holders of Sales and Use Tax Direct Pay Permits must notify the Department within 30 days of any change of circumstances that may affect the dealer’s qualification to hold the permit.
(k) Selling dealers are required to collect tax from customers whose Sales and Use Tax Direct Pay Permit has expired.
(3) Dealers using independent sellers or distributors.
(a) The Department will authorize a dealer that uses independent sellers or independent distributors to sell its merchandise to remit tax on the retail sales price charged to the ultimate consumer in lieu of having the independent seller or independent distributor register as a dealer and remit the tax. To request authorization from the Department, the dealer is required to:
1. Provide documentation of the dealer’s financial resources, including certified financial statements;
2. Provide a detailed description of the dealer’s information processing system to be used for the tax liabilities assumed and the allocation of discretionary sales surtaxes;
3. Provide a description of the property being sold by the independent sellers or independent distributors; and,
4. Agree to report and pay directly to the Department all sales tax liabilities that are transferred from the independent sellers or independent distributors to the dealer and to comply with the provisions of Florida Statutes Chapter 212, and this rule.
(b) A dealer who is authorized by the Department to remit tax for its independent sellers or independent distributors must report and remit the amount of sales tax and surtax due at the rate imposed by the county where delivery of the property to the independent seller or independent distributor occurs.
(c) A dealer authorized to remit tax on behalf of its independent sellers or independent distributors will not be authorized to make tax-exempt purchases under the permit. Such a dealer may use its Annual Resale Certificate to make tax-exempt purchases for the purposes of resale, as provided in Fl. Admin. Code R. 12A-1.039
(d) When a dealer’s authorization to remit tax on behalf of its independent sellers or independent distributors is canceled by the Department or voluntarily terminated by the dealer, that dealer is required to immediately provide written notification to each independent seller or distributor that it is no longer authorized to remit tax on behalf of its independent sellers or independent distributors.
Rulemaking Authority 212.18(2), (3), 212.183, 213.06(1) FS. Law Implemented 212.05(1)(e)3., 4., 212.0598, 212.06(11), 212.08(4)(a)2., (8), (9), 212.12(13), 212.18(3), 212.183 FS. History-New 4-7-92, Amended 5-19-93, 9-14-93, 11-16-93, 9-30-99, 10-2-01, 6-12-03, 9-1-09, 5-9-13, 1-11-16.
Terms Used In Florida Regulations 12A-1.0911
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Personal property: All property that is not real property.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
(a) The Department will authorize dealers to assume the obligation of self-accruing and remitting tax directly to the Department for the following purposes:
1. The apportionment of sales tax by eligible air carriers provided in Florida Statutes § 212.0598
2. The partial exemption provided in Section 212.08(9)(a), F.S., for railroad rolling stock, and parts thereof, used to transport persons or property for hire in interstate or foreign commerce and the partial exemption provided in Section 212.08(4)(a)2., F.S., for fuel used in railroad locomotives. See Fl. Admin. Code R. 12A-1.064
3. The partial exemption provided in Section 212.08(9)(b), F.S., for motor vehicles, and parts thereof, used to transport persons or property for hire in interstate or foreign commerce. See Fl. Admin. Code R. 12A-1.064
4. The partial exemption provided in Florida Statutes § 212.08(8), for vessels, and parts thereof, used to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes and the partial exemption provided in Section 212.08(4)(a)2., F.S., for fuel used in such vessels. See Fl. Admin. Code R. 12A-1.0641
5. The purchase of tangible personal property by dealers who annually purchase in excess of $10 million of taxable tangible personal property in any county for the dealer’s own use.
6. The purchase of tangible personal property by dealers who annually purchase at least $100,000 of taxable tangible personal property, including maintenance and repairs for the dealer’s own use, and the taxable status of the property will be known only when the dealer uses the property. For example, dealers whose normal trade or business characteristics require them to purchase property, maintenance, or repairs that will either become a component part of a product manufactured for sale or will be used and consumed by the dealer will know the taxable status of the property only when the property is used.
7. The purchase of promotional materials, as defined in Section 212.06(11)(b), F.S., by dealers who are unable to determine at the time of purchase whether the promotional materials used to promote subscriptions to publications will be used in Florida or exported from Florida. The seller of subscriptions to publications promoted by the promotional materials must be a registered dealer who is remitting sales tax to the Department on publications sold in Florida. The dealer purchasing and distributing the promotional materials and the seller of the promoted subscriptions to publications sold in Florida are not required to be the same entity.
8. The lease or license to use real property subject to the tax imposed by Florida Statutes § 212.031, from independent owners or lessors of real property by dealers who are required to remit sales tax electronically under Florida Statutes § 213.755
9. The lease of or license to use real property subject to the tax imposed by Florida Statutes § 212.031, by a dealer who leases or obtains licenses to use real property from a number of independent property owners who, except for the lease or license to the dealer, would not be required to register as dealers engaged in the business of leasing real property.
10. The lease or license to use real property subject to the tax imposed by Florida Statutes § 212.031, by operators of amusement machines or vending machines who lease or obtain licenses to use real property from property owners or lessors for the purpose of placing and operating an amusement or vending machine.
(b) Any person requesting authority from the Department to self-accrue and remit tax directly to the Department must:
1. File an Application for Self-Accrual Authority/Direct Pay Permit-Sales and Use Tax (Form DR-16A, incorporated by reference in Fl. Admin. Code R. 12A-1.097) with the Department, in the manner provided on the application; and,
2. Hold a valid certificate of registration for purposes of reporting sales and use tax. See Fl. Admin. Code R. 12A-1.060
(c) The Department will issue a Sales and Use Tax Direct Pay Permit to qualified applicants. The effective date of the permit is the postmark date of the application or, when the application is delivered by means other than the United States Postal Service, the date the application is received by the Department.
(d) The Department will specify on each permit the circumstances for which the dealer is authorized to self-accrue and remit sales and use tax directly to the Department. The authorized dealer is required to remit the tax directly to the Department.
(e) Any dealer that holds a valid Sales and Use Tax Direct Pay Permit may extend a copy of its permit to the selling dealer in lieu of paying tax for authorized purchases to the selling dealer.
(f) The validity of a Sales and Use Tax Direct Pay Permit may be verified by using the Department’s online Certificate Verification System at www.floridarevenue.com/taxes/certificates, by using the Department’s FL Tax mobile application, or by calling the Department’s automated nationwide toll-free verification system at 1(877)357-3725. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).
(g) Transaction authorization number issued prior to or at the point-of-sale – valid for a single transaction only. In lieu of obtaining a copy of the purchaser’s Sales and Use Tax Direct Pay Permit, the selling dealer may document the sale by requesting a transaction authorization number issued by the Department. A transaction authorization number is valid for single transaction only.
1. A “”transaction authorization number”” must be obtained by the selling dealer prior to or at the point-of-sale:
a. By using the Department’s online Certificate Verification System at www.floridarevenue.com/taxes/certificates;
b. By using the Department’s FL Tax mobile application; or
c. By calling the Department’s automated nationwide toll-free telephone verification system at 1(877)357-3725.
2. When using the Department’s online Certificate Verification System, the dealer may key up to five (5) Sales and Use Tax Direct Pay Permit numbers into the system. When using the Department’s FL Tax mobile application or the Department’s automated nationwide toll-free verification system, the selling dealer is prompted to key in a single Sales and Use Tax Direct Pay Permit number. Each system will either issue a transaction authorization number or alert the selling dealer that the purchaser does not have a valid permit. Selling dealers using the automated telephone verification system who do not have a touch-tone phone will be connected to a live operator Monday through Friday (excluding holidays) 8:00 a.m. to 5:00 p.m. (Eastern Time). Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).
3. A transaction authorization number is not valid to exempt subsequent purchases or rentals made by the same purchaser. A selling dealer must obtain a new transaction authorization number for each and every transaction.
4. The selling dealer must document the transaction authorization number on the sales invoice, purchase order, or a separate form that is prepared by either the purchaser or the selling dealer.
(h)1. Vendor authorization number for regular customers – valid for calendar year issue. In lieu of obtaining a copy of the purchaser’s Sales and Use Tax Direct Pay Permit or a Transaction Authorization Number from the Department for each sale to the permit holder, the selling dealer may obtain a Vendor Authorization Number for that permit holder. This option is available to selling dealers throughout the calendar year without limitation.
2. The “”vendor authorization number”” is a customer-specific authorization number that will be valid for all sales made to a permit holder during the calendar year.
3. To obtain vendor authorization numbers, the selling dealer may use the Department’s online Certificate Verification System at www.floridarevenue.com/taxes/certificates or send a written request to the Department. Dealers obtaining authorization numbers by submitting a written request to the Department may obtain the electronic format for sending the customer data from the Department’s web site at www.floridarevenue.com or call the Department at (850)488-3516 to obtain the electronic format.
a. The written request should be forwarded to the Florida Department of Revenue, Account Management MS #1-5730, Florida Department of Revenue, 5050 W Tennessee Street, Tallahassee, Florida 32399-0160, along with an electronic file containing a list of the dealer’s regular customers for which the dealer has a Sales and Use Tax Direct Pay Permit number on file. In response to the request, the Department will issue to the selling dealer, using the same electronic medium, a list containing a unique vendor authorization number for each permit holder.
b. The Department’s online Certificate Verification System allows the user to verify up to five Sales and Use Tax Direct Pay Permit numbers and to obtain a transaction authorization number for single sales made to each permit holder at once. The system also allows the user to upload a batch file of up to 50,000 accounts for verification and, 24 hours later, retrieve the file containing the vendor authorization numbers for all sales made to the permit holders during the calendar year.
4. The selling dealer may make tax-exempt sales to the permit holder during the period in which the vendor authorization number for that permit holder is valid. Vendor authorization numbers are valid for the remainder of the calendar year during which they are issued. However, vendor authorization numbers issued by the Department in November or December are valid for the remainder of that calendar year and the next calendar year.
(i) The expiration date of Sales and Use Tax Direct Pay Permit shall be the end of the month preceding five years from the effective date, if the effective date is on or before the 15th of the month. The expiration date shall be the end of the month that is five years from the effective date, if the effective date is after the 15th of the month. The Department will provide a renewal notice to a permit holder 60 days prior to the expiration date of a permit. Persons that fail to receive a renewal notice or that need more information regarding the notice may contact the Department at:
Central Registration
Florida Department of Revenue
P.O. Box 6480
Tallahassee, Florida 32314-6480.
(j) Holders of Sales and Use Tax Direct Pay Permits must notify the Department within 30 days of any change of circumstances that may affect the dealer’s qualification to hold the permit.
(k) Selling dealers are required to collect tax from customers whose Sales and Use Tax Direct Pay Permit has expired.
(3) Dealers using independent sellers or distributors.
(a) The Department will authorize a dealer that uses independent sellers or independent distributors to sell its merchandise to remit tax on the retail sales price charged to the ultimate consumer in lieu of having the independent seller or independent distributor register as a dealer and remit the tax. To request authorization from the Department, the dealer is required to:
1. Provide documentation of the dealer’s financial resources, including certified financial statements;
2. Provide a detailed description of the dealer’s information processing system to be used for the tax liabilities assumed and the allocation of discretionary sales surtaxes;
3. Provide a description of the property being sold by the independent sellers or independent distributors; and,
4. Agree to report and pay directly to the Department all sales tax liabilities that are transferred from the independent sellers or independent distributors to the dealer and to comply with the provisions of Florida Statutes Chapter 212, and this rule.
(b) A dealer who is authorized by the Department to remit tax for its independent sellers or independent distributors must report and remit the amount of sales tax and surtax due at the rate imposed by the county where delivery of the property to the independent seller or independent distributor occurs.
(c) A dealer authorized to remit tax on behalf of its independent sellers or independent distributors will not be authorized to make tax-exempt purchases under the permit. Such a dealer may use its Annual Resale Certificate to make tax-exempt purchases for the purposes of resale, as provided in Fl. Admin. Code R. 12A-1.039
(d) When a dealer’s authorization to remit tax on behalf of its independent sellers or independent distributors is canceled by the Department or voluntarily terminated by the dealer, that dealer is required to immediately provide written notification to each independent seller or distributor that it is no longer authorized to remit tax on behalf of its independent sellers or independent distributors.
Rulemaking Authority 212.18(2), (3), 212.183, 213.06(1) FS. Law Implemented 212.05(1)(e)3., 4., 212.0598, 212.06(11), 212.08(4)(a)2., (8), (9), 212.12(13), 212.18(3), 212.183 FS. History-New 4-7-92, Amended 5-19-93, 9-14-93, 11-16-93, 9-30-99, 10-2-01, 6-12-03, 9-1-09, 5-9-13, 1-11-16.