Where your customers are located, what you sell, and how you deliver it can all affect your obligations. Even businesses that do not collect sales tax on their services may owe use tax on certain purchases.
The best place to start is with three questions: Where does your business have tax obligations? Which transactions are taxable? Who is responsible for collecting and remitting the tax?
How selling across state lines changes your obligations
In 2018, the U.S. Supreme Court’s decision in South Dakota v. Wayfair removed the physical-presence requirement that had limited states’ ability to require remote sellers to collect sales tax. States subsequently adopted economic nexus rules based on sales into their jurisdictions.
Economic nexus means your sales activity can create tax obligations in a state even if you have no office, employees, or inventory there.
There is no single threshold that works everywhere. States differ in their sales thresholds, measurement periods, treatment of exempt and marketplace sales, and use of transaction-count tests. Some states still count transactions; others have eliminated that test.
Florida, for example, generally requires an out-of-state seller without a Florida physical presence to collect tax when its taxable remote sales into Florida exceeded $100,000 during the previous calendar year. That requirement took effect July 1, 2021. Florida does not have a separate transaction-count threshold.
That Florida rule does not determine what a Florida business must do when selling into another state. The destination state’s rules need their own review.
Physical presence also still matters. Employees, inventory, or other business activities in another state can create obligations even when sales fall below an economic nexus threshold.
Marketplace sales and your own online store
Selling through a marketplace and selling through your own website can involve different collection responsibilities.
A marketplace provider may collect and remit sales tax on qualifying sales made through its platform. That does not automatically resolve every registration, filing, or nexus question for the seller. State rules vary, particularly when a business also makes direct sales.
For your own online store, confirm exactly what your platform handles. Tax calculation, tax collection, return filing, and payment to the state are separate functions. A platform may calculate tax at checkout without filing returns or remitting it for you.
Review marketplace reports and direct sales together so you understand which sales have been covered and which still require action.
Florida sales tax and local surtaxes
Florida’s general state sales tax rate is 6%, and many counties impose an additional discretionary sales surtax.
For 2026, Hillsborough County’s surtax is 1.5%. For many transactions subject to the standard state rate and county surtax, that produces a combined rate of 7.5%.
The correct rate depends on the transaction and applicable location rules. For taxable goods delivered to a customer, the delivery county generally determines the county surtax. Certain transactions also have surtax limits, including a $5,000 cap on the taxable amount for many individual items of tangible personal property.
Accurate customer addresses and properly configured tax settings help prevent collection errors.
Digital products need a closer look
“Digital” is a delivery method, not a universal tax category.
States can treat downloadable software, software subscriptions, online education, and streaming services differently. In Florida, important distinctions include:
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Electronically delivered software: Generally not subject to Florida sales tax when the transaction solely involves electronic delivery and no tangible personal property is transferred.
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SaaS and cloud services: Pure software access and cloud-service arrangements without tangible property are generally not subject to Florida sales tax. Bundled hardware or other taxable components can change the analysis.
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Video and music streaming: Subject to Florida communications services tax, which is separate from ordinary sales tax.
Review what the customer receives, how it is delivered, and whether the price includes other products or services. A product’s Florida treatment does not establish its treatment elsewhere.
Professional service businesses should review purchases too
A law firm, consulting business, or other professional practice may have little reason to collect Florida sales tax on its ordinary professional services. However, that does not eliminate tax responsibilities on business purchases or separately sold taxable products.
Medical practices should also review equipment and supplies carefully. Some medical items qualify for exemptions, while other equipment purchases are taxable. The item and the applicable exemption requirements matter.
For service businesses, purchase invoices can be just as important to a tax review as customer invoices.
Do not overlook use tax
Florida use tax generally applies when a business uses or consumes a taxable purchase and the applicable sales tax was not paid.
Common items to review include office furniture, computers, equipment, and office supplies purchased from vendors that did not collect the appropriate tax.
An out-of-state purchase is not automatically taxable, and buying online does not automatically make a purchase exempt. The underlying item or service must be taxable under Florida law.
A regular review of purchase invoices can help identify missing tax before it becomes a larger issue.
Build a practical compliance process
Sales tax compliance becomes more manageable when it is part of your routine. A useful process includes:
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Review your state exposure. Track sales by destination and identify employees, inventory, and other activities outside Florida.
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Confirm taxability. Review products, services, delivery methods, bundles, and applicable exemptions.
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Check collection responsibilities. Separate marketplace sales from direct sales and confirm what each platform handles.
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Address prior exposure before registering. If past obligations were missed, evaluate available voluntary disclosure options and their requirements before taking action.
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Configure and monitor your systems. Keep tax settings, product classifications, exemption records, and filing calendars current.
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Revisit the review as your business changes. New products, sales channels, employees, or inventory locations can affect your obligations.
Automation can help with calculations and filing, but its results depend on accurate information and the services you have actually enabled.
Address missed obligations early
If you discover a potential compliance gap, gather the relevant sales and purchase records and review your options with a tax professional.
Voluntary disclosure programs may offer penalty relief or other benefits, depending on the state and circumstances. They have eligibility rules and required procedures. Florida, for example, instructs businesses applying for voluntary disclosure not to register online as part of that process.
Getting advice before registering or contacting a state can help you choose the appropriate path.
Get clarity on your sales tax responsibilities
Whether you run an online store in St. Petersburg, a professional practice in Tampa, or a growing business serving customers nationwide, understanding your tax responsibilities starts with your actual transactions.
At Kamish & Associates, we help small business owners understand their tax responsibilities and plan their next steps. Contact our team to discuss your sales activity, business purchases, and potential state tax exposure.
Tax information is current as of October 14, 2026. This article provides general information; requirements depend on your business and the applicable jurisdiction.
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Zach Kamish
Kamish & Associates CPA Firm · Tampa Bay, FL