Fla. Admin. Code R. 12-13.0064 — Relief for Inadvertent Sales and Use Tax Registration Errors

12-13.0064 Relief for Inadvertent Sales and Use Tax Registration Errors.

# (1)

A vendor or purchaser will not be held liable for the tax, interest, or penalty that would otherwise be due when:
(a) The purchaser did not pay to the vendor tax due on a taxable transaction based on a good faith belief that the transaction was a nontaxable purchase for resale or the transaction was exempt as a purchase by a tax-exempt organization; and,
(b) Instead of the taxes, penalties, and interest that would otherwise be due, the purchaser pays the mandatory penalties.

# (2)

To qualify, the purchaser must meet all of the following conditions:
(a) At the time of purchase, the purchaser was not registered as a dealer or did not hold a valid Florida Consumer's Certificate of Exemption issued by the Department;
(b) At the time of purchase, the purchaser was qualified to be registered with the Department as a dealer or was entitled to obtain a Florida Consumer's Certificate of Exemption;
(c) Before requesting application of the provisions of this subsection, the purchaser has registered as a dealer or has obtained a valid Florida Consumer's Certificate of Exemption;
(d) The transaction would otherwise qualify as a tax-exempt sale to the purchaser for resale or as a tax-exempt sale to an organization holding a valid Florida Consumer's Certificate of Exemption, except that the purchaser was not registered as a dealer or did not hold a valid Florida Consumer's Certificate of Exemption at the time of purchase; and,
(e) The purchaser establishes justifiable cause for failure to register as a dealer or to obtain a Florida Consumer's Certificate of Exemption before making the purchase.

# (3)

The establishment of justifiable cause is demonstrated by such factors as:
(a) The complexity of the transaction;
(b) The purchaser's business experience and history;
(c) Whether the purchaser sought advice on its tax obligations, and whether the advice was followed; or,
(d) Any remedial action taken by the purchaser.

# (4)

The purchaser or vendor must apply for relief:
1. Before the Department has initiated an audit or other action or inquiry; or
2. If any audit or other action or inquiry has been initiated, within seven days after being informed in writing by the Department that the purchaser was required to be registered with the Department or to obtain a Florida Consumer's Certificate of Exemption.

# (5)

Instead of tax, penalties, and interest that would otherwise have been due on transactions, one of the following penalties must be paid by either the vendor or the purchaser when the purchaser or vendor:
(a) Applies for relief before an audit or other action or inquiry has been initiated by the Department, a mandatory penalty in the amount of the lesser of $1,000 or 10 percent of the total tax due on qualifying transactions; or,
(b) Applies for relief after an audit or other action or inquiry has been initiated by the Department, a mandatory penalty in the amount of the lesser of $5,000 or 20 percent of the total tax due on qualifying transactions.

# (6)

When tax, penalty, or interest have been waived under the provisions of this rule, any subsequent retail sale of any taxable item or service is subject to tax, plus any applicable penalties, interest, or service fees.

Rulemaking Authority 212.07(c), 213.06(1),213.21(9) FS. Law Implemented 212.07(9), 213.21(9) FS. History-New 10-29-13