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Etsy - Whether hobby or business, what are the sales tax rules?

Posted by Rachel Santana Posted on Oct 04 2018

 

Whether you consider Etsy a hobby or an endeavor at a for-profit business, the Florida Department of Revenue considers it potentially subject to sales tax.

If you are an on-line seller, then you are required to collect and remit sales tax from your customers in the state of Florida.  Not everyone realizes that sales tax rates vary by county.   Because you could have customers in many different counties, the Florida Department of Revenue recommends collecting and remitting a flat 7.5%.

Oh yes, the tax is due on the whole amount including shipping.

In addition, even if you did not sell online but participate in a craft show where your goods are in “competition” with others, then you are required to collect and remit.

If this only happens 1-2 times per year, then you can apply for a “special event sales tax number” which is good for just that 3 day period and allows you to collect / remit / file, and be done with sales tax after that trade show.

However, if this activity occurs more than 1-2 times per year, even if you are not selling online, you are advised to get a permanent sales tax number.

The nice part is you can buy supplies that go into the finished product tax-free by just showing your tax certificate at Michaels, Walmart, etc.

Now that you are armed with this knowledge – go forth, sell, and be profitable.

Rachel Santana, EA, Partner

Hamilton and Phillips LLC

 

 

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