T I P Tax Information Publication

T I P Tax Information Publication
T I P
◆
◆
TIP#99A01-34
Date Issued: 12/01/99
Tax Information Publication
Resale Law Changes Effective February 1, 2000
Approximately $35 million is lost each year due to illegal use of expired or fraudulent resale certificates. This
new law is intended to address this problem.
At a Glance
Annual Resale
Certificate will be
issued by Florida
Department of
Revenue
Q. What is changing? (page 1)
A. DOR will now issue annual resale certificates.
Q. What is the effective date of the change? (page 1)
A. February 1, 2000.
Q. Will this change affect my sales tax certificate number? (page 1)
A. No.
Q. How will I receive my new annual resale certificate? (page 1)
A. It will be included in your coupon book.
Q. When will the new annual resale certificate expire? (page 1)
A. December 31 of each year.
Q. Will I have to re-apply for my new annual resale certificate each
year? (page 1)
A. No, as long as you are an active dealer.
Q. How often will I have to provide a copy of my annual resale
certificate to each of my suppliers? (page 2)
A. Once a year.
Q. What if I don’t have my annual resale certificate with me when I
want to buy for resale? (page 2)
A. You can pay tax, OR
The supplier can verify your status by calling DOR.
1
Beginning with the calendar
year 2000, the Florida Department
of Revenue (“the department”)
will issue a sales tax Annual Resale
Certificate (Form DR-13) to each
active registered dealer. The
annual resale certificate will be
sent by mail to existing dealers in
their coupon books and will be
provided to new dealers with their
certificate of registration.
The new annual resale certificates issued by the department will
expire on December 31 of each
calendar year. Each year, active
dealers will receive a new annual
resale certificate by mail, free of
charge, before the current one
expires. Do not give out the
original; make copies to distribute
when you purchase for resale.
The account number on your
certificate of registration will not
change. That same number will be
used each year on your annual
resale certificate.
Old Resale Certificates No Longer Valid after January 31, 2000
A dealer must retain all relevant books and records, including the “old” blanket resale certificates,
until sales tax may no longer be assessed under the applicable statute of limitations.
Methods for Seller to Document an
Exempt Sale for Resale
Selling dealers must document all exempt sales for resale. Dealers making
sales for resale may use any of the following options:
Method 1. Dealer can obtain a copy of the annual resale certificate each year
from customers.
OR
Method 2. Dealer can obtain an authorization number by phone.
If the purchaser forgets their annual resale certificate, but knows their sales tax number, the
selling dealer can obtain a “transaction authorization number” by phone, directly from the department, at the time of the sale to verify that the certificate number presented is active. The toll-free
number to access the system is 877-FLRESALE (877-357-3725), which has multiple lines available.
The selling dealer must key in the purchaser’s sales tax certificate number using a touch-tone phone. The
system will either issue a 13 digit transaction authorization number or will alert the selling dealer that the
purchaser does not have a valid resale certificate. A selling dealer must obtain a transaction authorization
number for each transaction and cannot rely upon the previous transaction authorization number for
subsequent purchases made by the same customer. The selling dealer must document the transaction
authorization number on each sales invoice, purchase order, or separate form that is prepared by either the
purchaser or the selling dealer. Each sales invoice, purchase order, or separate form must contain the following
statement and signature of the purchaser, “The purchaser hereby certifies that the property or services being purchased or rented are for resale.”
OR
Method 3. Dealer can obtain one copy of the purchaser’s annual resale
certificate for certain open-account customers.
If a customer purchases on open account (not cash, check, or promissory note), the selling dealer can obtain a
copy of the purchaser’s annual resale certificate for the first transaction. The selling dealer may assume the annual resale
certificate is valid as long as the dealer continues to sell on an open account on a continual basis to that customer. In
this situation, the selling dealer does not need to obtain a new copy of the annual resale certificate each year.
OR
Method 4. Dealer can obtain an authorization number electronically.
The dealer can obtain a “vendor authorization number” by sending a file of regular customer
names and numbers who purchase for resale on electronic media to the department each year. The
department will issue a “vendor authorization number” for customers whose sales tax number is valid
for resale. Once a vendor authorization number has been issued, it is valid through the end of the
calendar year. Information on the electronic method can be obtained from the department’s web
page, or by calling 850-488-3516.
2
Other Exemption
Certificates Unaffected
For More
Information
The law change highlighted in this document only
affects exempt sales for resale and the use of annual resale
certificates. It does not affect the use of other exemption
certificates or permits such as those used by non-profit
and governmental organizations or by new and expanding businesses.
Tax information and forms are available online at:
http://sun6.dms.state.fl.us/dor/
Pc
a
r
For forms and general information, call Taxpayer
Services, Monday-Friday, 8 a.m. to 5 p.m., ET, at
1-800-352-3671 (in Florida only) or 850-488-6800 and
select Information on Taxes or Forms from the option
menu.
d
Government Purchases Using a
Purchasing Card
Government entities who make purchases with a
Purchasing Card (P-Card) do not have to extend a copy
of the consumer’s certificate of exemption to the selling
dealer. The P-Card is sufficient documentation. If you
have questions or would like additional information
regarding P-Card purchases, please contact the department at 800-352-3671 (Florida only) or 850-488-6800.
Hearing or speech impaired persons can call the TDD
line at 1-800-367-8331 or 850-922-1115.
Tax Law Library: This text retrieval system containing
Florida tax information is organized by tax and updated
quarterly. It is accessible through:
• the Internet at
http://taxlaw.state.fl.us
• a stand alone system located in the lobby of each
Department of Revenue Service Center.
Registered Dealers on an
Inactive Status
Get the forms you need fast by FAX on Demand! Call
seven days a week, 24 hours a day, at 850-922-3676
from your FAX machine telephone and follow the
instructions.
Dealers on an inactive status will not be issued
an annual resale certificate. Wholesalers and other
inactive dealers will need to contact the department
at 800-352-3671 (Florida only) or 850-488-6800 to
have their sales tax certificate numbers activated in
order to obtain an annual resale certificate. Dealers
who currently report sales tax using a county-control
number should use the annual resale certificate
issued to the active reporting number(s) to make
purchases for resale.
For detailed written responses to your questions, write:
Florida Department of Revenue,
Tax Information Services,
1379 Blountstown Highway,
Tallahassee, FL 32304-2716.
Seminars Offered
Department of Revenue service centers host educational
seminars about how Florida’s taxes affect various businesses. For a schedule of upcoming seminars,
• visit us online at
http://sun6.dms.state.fl.us/dor/
or
• call the service center nearest you for a schedule of
upcoming seminars.
Fraudulent
Use of Resale
Privilege is a Crime!
Resale fraud:
♦ subjects you to a 200% penalty and
♦ is a 3rd degree felony.
These penalties will apply to any person who uses an
Annual Resale Certificate or signs any statement in writing
in which he or she claims the resale exemption from sales
tax when he or she knows, at the time of purchase or rental,
that the property or services being purchased or rented are
for a purpose other than for resale.
This document is intended to alert you to the
requirements contained in Florida laws and administrative rules. It does not by its own effect create rights
or require compliance.
References:
Chapter 99-208, L.O.F.
Sections 212.07(1)(b), 212.18(3)(c), 212.085, F.S.
3
EASY REFERENCE GUIDE
WHAT TO DO WHEN YOU MAKE
AN EXEMPT SALE FOR RESALE
• Purchaser DOES bring in
annual resale certificate.
Obtain a copy of the annual resale certificate. Have the purchaser fill in your business name and
sign in the space provided . Keep this copy on file.
• Purchaser DOES NOT bring in
annual resale certificate.
Phone toll-free 877-FLRESALE (877-357-3725). Key in the purchaser’s sales tax certificate number
using a touch-tone phone. The system will either issue a 13 digit transaction authorization number or will
alert you that the purchaser does not have a valid resale certificate. Document the transaction authorization
number on each sales invoice, purchase order, or separate form that is prepared by either party. The sales
document must contain the following statement and signature of the purchaser, “The purchaser hereby
certifies that the property or services being purchased or rented are for resale.”
Do not give out the original; make copies
to distribute when you purchase for resale.
Purchaser’s
business name will
be printed here
Date purchaser
registered business
with DOR
Certificate
expiration date
Purchaser’s DOR
sales tax number
DR-13
N. 01/00
2000 Annual Resale Certificate
THIS CERTIFICATE EXPIRES ON DECEMBER 31, 2000.
Business Name and Location Address
Registration Effective Date
Certificate Number
This is to certify that all tangible personal property purchased or rented, real property rented, or services purchased after the above Registration Effective Date by
the above business are being purchased or rented for one of the following purposes:
•
•
•
•
Resale as tangible personal property.
Re-rental as tangible personal property.
Resale of services.
Re-rental as real property.
•
•
Re-rental as transient rental property.
Incorporation into and sale as part of the repair of tangible
personal property by a repair dealer.
•
Incorporation as a material, ingredient, or component part of
tangible personal property that is being produced for sale by
manufacturing, compounding, or processing.
This certificate cannot be reassigned or transferred. This certificate can only be used by the active dealer or its authorized
employees. Misuse of this Annual Resale Certificate will subject the user to penalties as provided by law.
Presented to: ______________________________
(Insert name of seller on photocopy.)
The seller’s
business name
goes here
Presented by:_____________________________
(date)
Authorized Signature (Purchaser)
NOTE: penalty
statement
4
Signed and dated
by purchaser
(date)
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