I have a client that is exempt from sales taxes in Florida. However, they have recently been told by utility companies that they have to charge sales tax for utilities even if the company they are servicing is exempt. Please advise.

ANSWER

The BIDaWIZ Team's Answer:

We're assuming you're referring to the 2.5% gross receipts tax in Florida. You are correct that the gross receipts tax is not applicable to a recipient that is exempt from the tax as per the Florida Statute 212.08(7)(ff)2 & in the instructions on Form DR133. You should reference those statutes in response to the utility/gas companies.

References: Florida Statute 212.08(7)(ff)2, Florida Form DR133
State: Florida
Sales tax category: Exemption Certificate
Product/Service: Utilities