Are Consulting Services Taxable in Florida?

When it comes to taxation, the state of Florida generally does not collect sales taxes on the majority of services provided. This means that a yoga instructor, for instance, would not be required to collect sales tax, while a private investigator might be. However, if the service you provide includes the creation or repair of a physical product, you may have to pay sales tax on the products. It is important to note that all sales tax dates and other information are subject to change, so always check with the Florida Department of Revenue for the final word on all sales tax issues.

The county overtax rate applies to a taxable item or service that is delivered to a county that imposes an overtax. Even if your company does not provide one of the taxable services mentioned above, you may still be liable for sales tax. If your company buys these types of services in Florida and does not pay Florida sales tax, the Florida DOR will collect taxes, penalties and interest from your company for not accumulating the tax on the use of taxable services. Management services for the use of commercial or residential properties belong to a unique category of Florida law.

Because the economy has shifted from a manufacturing economy to a service economy, states are now seeking to generate revenues by taxing services. TAA 11A-007 (residential pool cleaning service is NOT subject to sales tax, but is subject to use tax). In addition to sales tax collection obligations for businesses that sell or rent tangible personal property, tangible personal property repair services (TPP) can become a service subject to sales tax if any TPP is provided to the customer. In summary, here is a list of services that are specifically subject to Florida's sales tax (use tax): criminal investigation and protection services; non-residential interior cleaning services; non-residential pest control services; and any service that includes the repair or creation of a product.

Dylan Nemecek
Dylan Nemecek

Typical social media ninja. Professional pop culture nerd. Unapologetic bacon advocate. Proud pop culture guru. Incurable social media nerd.

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