Florida use tax is the counterpart to sales tax — it applies when you purchase taxable goods or services without paying Florida sales tax, and then use those items in Florida. Most commonly triggered by: out-of-state online purchases, purchases from vendors in other states, and inventory purchased with resale certificates but then used in the business. Florida use tax is widely under-reported by small businesses and is a consistent audit target.
Florida use tax (same rate as sales tax: 6% + county surtax) is owed when: (1) You purchase taxable goods from an out-of-state vendor who doesn't collect Florida sales tax (e.g., online retailers without Florida nexus, before economic nexus rules took effect); (2) You purchase items with a resale certificate but then use them in your business rather than reselling them (converting resale inventory to business use); (3) You bring property into Florida purchased in another state where no sales tax was charged; (4) You rent or lease tangible personal property from out-of-state vendors for use in Florida. Use tax is self-reported — it's not withheld at the vendor level.
Florida businesses registered for sales tax report use tax on their DR-15 sales tax return in the 'exempt purchases converted to taxable use' column. Businesses not registered for sales tax report use tax on Form DR-15MO (out-of-state purchases report). Payment is due by the 20th of the month following the quarter in which the purchase occurred. Unlike sales tax (which you collect from customers), use tax is an expense your business pays out of pocket — it reduces pre-tax income as a business expense, partially offsetting the tax cost.
Florida business use tax scenarios: (1) Equipment purchased from out-of-state distributor without Florida tax → use tax due on purchase price; (2) Office supplies ordered from Amazon (now typically collects FL tax) or smaller online retailers that don't → use tax on untaxed amount; (3) Software as a Service (SaaS) subscriptions from vendors without Florida nexus → often subject to use tax as digital services (varies by software type); (4) Trade show purchases brought back to Florida → use tax if no tax was charged; (5) Personal property relocated to Florida from another state for business use → use tax if not previously taxed.
Florida DOR audits use tax compliance as part of sales tax audits. The auditor will compare total purchases (from bank statements, vendor invoices, and accounts payable records) against tax paid, looking for items that should have been taxed but weren't. The most common finding: significant equipment purchases with no corresponding use tax paid. Florida's look-back period for use tax audits is 3 years (longer for fraud or substantial underreporting). Proactively self-reporting use tax is far less expensive than paying back tax + interest + penalties after an audit.
Using a Florida resale certificate to purchase items that are not actually for resale (buying office equipment for the store, pulling products from inventory for business use) creates a use tax obligation. When you use previously-purchased resale inventory in your business, you owe use tax on the wholesale cost of those items. This includes: samples taken from inventory, products damaged and used internally, products provided to employees. The use tax is calculated on the cost to you (wholesale price), not retail value. Track inventory withdrawn for business use in your records.
Use tax is the counterpart to sales tax — owed by Florida businesses when they purchase taxable items without paying Florida sales tax. The rate is 6% + county surtax, same as sales tax.
Amazon now collects Florida sales tax for most purchases. But smaller online retailers or direct-from-manufacturer purchases without Florida nexus may not collect — triggering use tax on those transactions.
Yes — use tax paid by a Florida business is a deductible business expense, reducing taxable income on your federal return.
We help Florida small businesses identify and report use tax obligations — avoiding costly DOR audits and penalties.
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