Form Gt-800010 - Sales And Use Tax On Repair Of Tangible Personal Property (Page 2 of 3) in pdf

Maintenance or Service Warranty Contracts – A service warranty is “any contract or

agreement for the cost of maintaining, repairing, or replacing tangible personal property.”

This does not include contracts or agreements covering tangible personal property that

becomes a part of real property.

The sale of a maintenance or service warranty contract, including an extended warranty,

covering taxable tangible personal property is subject to sales tax and surtax.

Who Must Register to Collect Tax?

Any person who repairs tangible personal property for others must register with the

Department. You can register to collect and report tax through our website. The site will

guide you through an application interview that will help you determine your tax obligations. If

you do not have Internet access, you can complete a paper Florida Business Tax Application

(Form DR-1).

After we approve your registration, you will receive a Certificate of Registration (Form

DR-11) and a Florida Annual Resale Certificate for Sales Tax (Form DR-13). If you are not

filing electronically, we will mail paper tax returns to you. The Florida Annual Resale

Certificate for Sales Tax is used for tax-exempt purchases you intend to resell.

You may purchase materials and parts tax-exempt when the item, such as repair parts,

bolts, nuts, welding rods, solder, paint, thinner, or oil, will become a part of the repaired item.

Materials that do not become a part of the property repaired, but are used to make the

repair, such as tools, sandpaper, steel wool, flux, or detergents, are subject to sales tax and

surtax as overhead items. If the goods bought for resale are later used (not resold), you must

report and pay use tax and surtax on those items. Florida law provides for criminal and civil

penalties for fraudulent use of a Florida Annual Resale Certificate for Sales Tax.

When is Tax Due?

Returns and payments are due the first day of the month and late after the 20th of the

month following each reporting period, whether you are filing monthly, quarterly, twice a

year, or yearly. If the 20th falls on a Saturday, Sunday, or state or federal holiday, returns

and payments will be timely if they are postmarked on the first business day after the 20th.

Florida law requires you to file a tax return even if you do not owe sales and use tax.

Electronic Filing and Payment

We offer the use of our free and secure website to file and pay sales tax. You also have the

option of buying software from a software vendor. For more information on electronic filing

and payment options, visit our website.

You may voluntarily file and pay taxes electronically; however, if you pay $20,000 or more in

sales and use tax between July 1 and June 30 (the state fiscal year), you must use

electronic funds transfer (EFT) for the next calendar year to pay your taxes.

If you make tax payments using electronic funds transfer (EFT), you must initiate electronic

payments no later than 5:00 p.m., ET, on the business day before the 20th.

Penalty and Interest

Penalty – If you file your return or pay tax late, a late penalty of 10 percent of the

amount of tax owed, but not less than $50, may be charged. The $50 minimum

penalty applies even if no tax is due. Penalty will also be charged if your return is

incomplete.

Interest – A floating rate of interest applies to underpayments and late payments of

tax. Current and prior period interest rates are posted on our website.

Florida Department of Revenue, Sales and Use Tax on Repair of Tangible Personal Property, Page 2

Form Gt-800010 - Sales And Use Tax On Repair Of Tangible Personal Property Page 2

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