TAA 23A-016M Export
QUESTION: Taxpayer would like confirmation that it is not required to collect Florida sales tax on sales of tangible personal property sold in an export transaction when the following requirements are met:
1. To qualify for the exemption from the imposition of sales tax on export transactions, the tangible personal property must be irrevocably committed to the export process, resulting in the stream of commerce remaining continuous and unbroken; and
2. Any shipping documents from the sale should: (1) describe the tangible personal property; (2) provide a date of shipment; (3) provide a final destination, which will generally only list the airport code or country; and (4) provide a name or address of the Freight Forwarder. Or, 3. The sale is shipped to a 9-digit zip code of a valid address listed on Florida’s certified forwarding agent list.
ANSWER: Taxpayer would not be required to collect Florida sales tax on sales of tangible personal property sold in an export transaction when the following requirements are met:
1. The tangible personal property must be irrevocably committed to the export process, resulting in the stream of commerce remaining continuous and unbroken; and
2. Any shipping documents from the sale should: (1) describe the tangible personal property; (2) provide a date of shipment; (3) provide a final destination, which will generally only list the airport code or country; and (4) provide a name or address of the Freight Forwarder.
April 30, 2025
Via Email: ________________
Subject: Technical Assistance Advisement: 23A-016 MODIFIED
STATUTE CITE(S): Sections 212.02, 212.05965, and 212.06, Florida Statutes (F.S.)
RULE CITE: Rule 12A-1.0015, Florida Administrative Code (F.A.C.)
________________ ("Taxpayer")
FEIN: ________________
BP# ________________
Dear ________________,
This is in response to your letter dated ________________, requesting this Department’s issuance of a Technical Assistance Advisement (“TAA”) pursuant to section 213.22, F.S., and Rule Chapter 12-11, F.A.C., concerning the matter referenced below. An examination of your letter has established that Taxpayer has complied with the statutory and regulatory requirements for issuance of a TAA. Therefore, the Department is hereby granting your request for a TAA.
REQUESTED ADVISEMENT
Taxpayer is seeking guidance regarding the sales and use tax treatment of export sales in Florida and what documentation a foreign purchaser would need to provide Taxpayer to ensure that the sale meets the requirement to be exempt from sales and use tax in Florida. In particular, Taxpayer would like confirmation that it is not required to collect Florida sales tax on sales of tangible personal property sold in an export transaction when the following requirements are met:
1. To qualify for the exemption from the imposition of sales tax on export transactions, the tangible personal property must be irrevocably committed to the export process, resulting in the stream of commerce remaining continuous and unbroken; and
2. Any shipping documents from the sale should: (1) describe the tangible personal property; (2) provide a date of shipment; (3) provide a final destination, which will generally only list the airport code or country; and (4) provide a name or address of the Freight Forwarder.
Or,
3. Sale is shipped to a 9-digit zip code of a valid address listed on Florida’s certified forwarding agent list.
FACTS
On ________________, the Department reached out to Taxpayer for clarification of the facts because it appeared that there was a discrepancy between the facts provided by Taxpayer and what was actually on Taxpayer’s website. In particular, it appeared that Taxpayer’s website indicated it had one International Shipping Center in ________________ that was strictly used for shipping items to foreign customers as opposed to Taxpayer’s presentation of the facts which indicated the foreign purchaser directs the Marketplace Seller to ship the purchased items directly to a Forwarding Agent located in Florida. On ________________, Taxpayer indicated that the facts as provided in its request dated ________________, were correct and were to be used in formulating the response. Through its website, ________________, Taxpayer hosts an online marketplace where third-party sellers post product listings, and third-party users may respond to the listings by either bidding on items via an online auction sale or purchasing the listed products at a fixed price. Taxpayer provides the platform for the sale of goods, but Taxpayer does not sell the items listed for sale. All product listings and sales are subject to Taxpayer’s User Agreement, which you state makes it clear that Taxpayer is not the seller of record for the products listed on ________________.
You state that pursuant to s. 212.05965(1)(b), F.S., Taxpayer is defined as a Marketplace Provider1 and is therefore required to collect and remit Florida sales and use tax to the Department for sales that occur between Marketplace Sellers2 and Florida customers via Taxpayer’s website. Taxpayer registered with the Department as a Marketplace Provider and began filing Florida sales and use tax returns with the Department for the period beginning ________________. On Taxpayer’s sales and use tax returns, Taxpayer reports all sales made by Marketplace Sellers to Florida customers that were made through Taxpayer’s website. Taxpayer collects and remits the Florida sales and use tax due from the Marketplace Sellers to the Department.
Through Taxpayer’s website, Marketplace Sellers sell tangible personal property to customers located worldwide. In the case of a foreign purchaser, the purchaser pays the United States-based Marketplace Seller directly via Taxpayer’s website; then, the foreign purchaser directs the Marketplace Seller to ship the purchased item directly to a Forwarding Agent located in Florida. The Forwarding Agent then helps to facilitate the international logistics and customs clearance of the item, ultimately delivering it to the final destination in the foreign purchaser’s country of residence. This process is referred to as “freight forwarding.”
LAW AND DISCUSSION
Unless a specific exemption applies, s. 212.05, F.S., provides it is the legislative intent that every person is exercising a taxable privilege that engages in the business of selling tangible personal property3 in this state. For exercising such a privilege, a tax is levied on each taxable transaction or incident. The tax is due and payable at the rate of 6 percent, plus any applicable surtaxes imposed under s. 212.055, F.S., on the total consideration received for each item or article of tangible personal property when sold at retail in this state.
Article 1, Section 10, Clause 2 of the United States Constitution (“Import-Export Clause”) generally prohibits individual states from taxing imports and exports to and from the state.
In order to affect the requirements imposed by the Import-Export Clause and other components of federal law, Florida law provides that it does not intend to levy a tax on tangible personal property imported, produced, or manufactured in the state for export. See s. 212.06(5)(a), F.S.
Section 212.06(5)(a)1., F.S., and Rule 12A-1.0015(1)(a), F.A.C., provide that tangible personal property imported, produced, or manufactured in this state for export is not subject to Florida sales tax when the importer, producer, or manufacturer delivers the property to a licensed exporter for export outside Florida or to a common carrier for shipment outside of Florida, or mails the property by United States mail to a destination outside Florida.
Rule 12A-1.0015(2)(b), F.A.C., provides that “when a dealer sells tangible personal property, commits the property to the exportation process at the time of sale, and the exportation process remains continuous and unbroken until the property is exported from Florida, the dealer is not required to collect tax.” For the exemption to be applicable, the dealer must commit the property to the exportation process at the time of the sale, and the exportation process must remain continuous and unbroken until the property is exported from Florida.
Rule 12A-1.0015(2)(b), F.A.C., lists methods to commit the property to the exportation process at the time of sale:
1. The dealer is required by the terms of the sale contract to deliver the property outside Florida using the dealer’s own mode of transportation.
2. The dealer is required by the terms of the sale contract to mail the property by United States mail to a destination located outside Florida; or
3. The dealer is required by the terms of the sale contract to deliver the property to a carrier, licensed customs broker, or forwarding agent for final and certain movement of the property to a destination located outside Florida.
The dealer is required to keep sufficient records such as contracts, invoices, bills of lading, etc. to document that the tangible personal property was exported outside Florida. It should be possible to trace and identify the specific item(s) throughout the documentation.
Taxpayer’s export transaction would not be subject to Florida sales and use tax provided the conditions specified in Rule 12A-1.0015(2)(b) F.A.C., and s. 212.06(5)(a)1, F.S. are met. There is no condition in Rule 12A-1.0015(2)(b), F.A.C., or s. 212.06(5)(a)1., F.S., which requires that a particular freight forwarder be used only that “the dealer is required by the terms of the sale contract to deliver the property to a carrier, licensed customs broker, or forwarding agent for final and certain movement of the property to a destination located outside Florida.” In the instant case, if the tangible personal property is only taken possession of in Florida by a common carrier, licensed customs broker, or forwarding agent for final delivery outside the United States, the sale would not be subject to Florida sales tax.
In addition, effective January 1, 2022, s. 212.06(b), F.S., was amended to create a process by which a forwarding agent may apply for and receive a Certificate of Forwarding Agent Address (the Certificate). The certificate may be used to document that no sales tax is due on items shipped to the address on the Certificate for international export. A copy of the Certificate can be provided to the selling dealer in lieu of collecting the tax imposed by ch. 212, F.S. The new law specifies that a dealer may accept a valid copy of the Certificate and is not liable for any tax due on sales made during the effective dates indicated on the certificate. The Department is required to publish a list of forwarding agents that have received a Certificate and identify their name, address, and expiration date provided on their Certificate. See www.floridarevenue.com for a current list; s. 213.053(5), F.S. A selling dealer may collect a copy of a forwarding agent’s Certificate or rely on the list published on the Department’s website – in either case the selling dealer will not be held liable for tax due on sales made during the effective dates indicated on the Certificate.
Taxpayer has inquired as to “if” the requirements listed above are not sufficient to meet the
requirements of the sales tax exemption for exports, could Taxpayer assign the sales tax refund to
the purchaser so the purchaser can apply for a refund directly with the Department. Regarding tax
paid into the State Treasury that is determined to be an overpayment, a payment where no tax is
due, or a payment made in error, such tax is eligible for refund when an application for refund is filed within three-years from the date that the tax was paid. See s. 215.26, F.S. Section 215.26, F.S., and Rule 12A-1.014(4) F.A.C., Refunds and Credits for Sales Tax Erroneously Paid, authorize a refund under certain circumstances, provided the customer paid the tax directly to the Department or the customer has secured an assignment from the selling dealer to whom the tax was paid. The assignment of rights provides that the vendor assigns any right the vendor has to recover sales tax paid to the Department. The party requesting a refund must timely file an Application for Refund, Form DR-26S, with the Department. For circumstances in which an assignment of rights is required, please use Form DR-26A, Assignment of Rights to Refund of Tax.
CONCLUSION
Taxpayer would not be required to collect Florida sales tax on sales of tangible personal property sold in an export transaction when the following requirements are met:
1. The tangible personal property must be irrevocably committed to the export process, resulting in the stream of commerce remaining continuous and unbroken; and
2. Any shipping documents from the sale should: (1) describe the tangible personal property; (2) provide a date of shipment; (3) provide a final destination, which will generally only list the airport code or country; and (4) provide a name or address of the Freight Forwarder.
This response constitutes a TAA under s. 213.22, F.S., which is binding on the Department only under the facts and circumstances described in the request for this advice, as specified in s. 213.22, F.S. Our response is predicated on those facts and the specific situation summarized above. You are advised that subsequent statutory or administrative rule changes, or judicial interpretations of the statutes or rules, upon which this advice is based, may subject similar future transactions to a different treatment than expressed in this response.
You are further advised that this response, your request and related backup documents are public records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions of s. 213.22, F.S. Confidential information must be deleted before public disclosure. In an effort to protect confidentiality, we request you provide the undersigned with an edited copy of your request for TAA, the backup material and this response, deleting names, addresses and any other details which might lead to identification of the Taxpayer. Your response should be received by the Department within ten (10) days of the date of this letter.
Leigh L. Ceci, MAcc
Tax Law Specialist
Office of Technical Assistance
1) Section 212.05965(1)(b), F.S., defines the term, “Marketplace provider,” as a person who facilitates a retail sale by a marketplace seller by listing or advertising for sale by the marketplace seller tangible personal property in a marketplace and who directly, or indirectly through agreements or arrangements with third parties, collects payment from the customer and transmits all or part of the payment to the marketplace seller, regardless of whether the marketplace provider receives compensation or other consideration in exchange for its services.
2) Section 212.05965(1)(c), F.S., defines the term, “Marketplace seller,” as a person who has an agreement with a marketplace provider that is a dealer under this chapter and who makes retail sales of tangible personal property through a marketplace owned, operated, or controlled by the marketplace provider.
3) Tangible personal property means and includes personal property which may be seen, weighed, measured, or touched or is in any manner perceptible to the senses. See s. 212.02(19), F.S.
