Were CDs containing scanned invoices exempt Florida export sales when the dealer shipped them to an out-of-state customer?

Plain-English summary

Florida explained how CDs containing scanned customer invoices could qualify as exempt sales for export, but it did not decide that the submitted transactions actually qualified.

The dealer scanned hard-copy invoices onto its own CDs and shipped the discs to the client's out-of-state address. To establish exemption, its records had to show that each CD was committed to export at the time of sale and moved through a continuous, unbroken export process. Intent alone, or delivery to a Florida location for later export, was insufficient.

Any refund also required transaction-level proof. The dealer that remitted the tax could first refund the client and then claim from Florida, or give the client a valid assignment of rights. The ruling states a general three-year refund period.

What this means for you

Sellers shipping tangible media out of Florida

Keep carrier receipts, bills of lading, mailing records, or comparable documents that identify the item, purchaser, and ultimate out-of-state destination.

Customers seeking refunds

Paying tax to a dealer does not automatically let the customer claim directly from the state. Coordinate a dealer refund or obtain a valid assignment of the dealer's rights.

Common questions

Did Florida hold that these CDs were exempt? No definitive determination was made.

What would support exemption? Records proving commitment to export at sale and uninterrupted movement outside Florida.

Could the customer seek a refund directly? Only if it paid Florida directly or obtained a valid assignment from the dealer, under the ruling's refund discussion.

Citations and references

• Fla. Stat. Sec. 212.06(5)(a)1.
• Fla. Stat. Sec. 215.26
• Fla. Admin. Code R. 12A-1.0015

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 20A-016

Original ruling text

QUESTION: Is the service of providing digitized invoices on a CD, furnished by a dealer and
separately stated on an invoice that is shipped to a customer outside the State of Florida, a
taxable service or an exempt qualifying sale for export? If the transactions are exempt, is the
customer entitled to a refund of sales tax from the State of Florida?
ANSWER: All sales of tangible personal property in Florida are subject to tax, unless specifically
exempt by Chapter 212, F.S. An exemption may be applicable for a variety reasons: the nature of
the item sold; classification of the purchaser as a tax-exempt purchaser; or the nature of the sale.
Our previous TAA addressed the application of tax based on the nature of the item sold.
Where 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. Where
documentation does not exist to show that tangible personal property “was exported” outside
Florida and was committed to the exportation process at the time of sale, and that the
exportation process was continuous and unbroken until the property was exported from Florida,
the dealer is liable for any tax due that was not collected.
If a refund was due, the dealer is required to refund the customer first before seeking a refund
from the State of Florida or the customer would have to obtain a validly executed Assignment of
Rights from the dealer.

August 21, 2020
XXX
Attn: XXX
XXX
XXX
RE:

Technical Assistance Advisement – 20A-016
Florida Sales and Use Tax - Information Services
Sections 212.02, 212.05, 212.06, and 212.08, Florida Statutes (“F.S.”)
Rule 12A-1.0015, Florida Administrative Code (“F.A.C.”)

Technical Assistance Advisement
August 21, 2020
Florida Department of Revenue
Page #2
XXX (“Taxpayer”)
BPN: XXX
FEIN: XXX
XXX (“Client”)
FEIN: XXX
XXX (“POA”)
FEIN: XXX
Dear XXX:
This letter is a response to your petition dated July 9, 2019, for the Florida Department of
Revenue's ("Department") issuance of a Technical Assistance Advisement concerning the above
referenced party and matter. Your petition has been carefully examined and the Department
finds it to be in compliance with the requisite criteria set forth in Chapter 12-11, Florida
Administrative Code. This response to your request constitutes a TAA and is issued to you under
the authority of s. 213.22, F.S.
STATED FACTS PRESENTED
Taxpayer provides a service to [the Client], which involves the scanning of hard copy invoices
onto a CD ROM, furnished by Taxpayer, to provide [the Client] digitized invoices. After
processing, a CD(s) is created with all the collected data and shipped back to [the Client] at an
address in XXX.
Taxpayer provided copies of invoices and shipping documents. Taxpayer previously requested
and was given a TAA (19A-011, dated April 26, 2019) addressing the taxability of the provided
services. The impact that shipment of the CDs outside of Florida may have on taxability was not
addressed.
REQUESTED ADVISEMENT
Taxpayer seeks an opinion from the Department regarding the taxability of the services provided
to [the Client] where the tangible personal property is mailed out of state.

Technical Assistance Advisement
August 21, 2020
Florida Department of Revenue
Page #3
LAW AND RESPONSE
All sales of tangible personal property in Florida are subject to tax, unless specifically exempt by
Chapter 212, F.S. An exemption may be applicable for a variety reasons: the nature of the item
sold; classification of the purchaser as a tax-exempt purchaser; or the nature of the sale. Our
previous TAA addressed the application of tax based on the nature of the item sold. We affirm
that finding and will not address it further here. At issue currently is whether the transaction
qualifies for exemption based on the nature of the sale, due to the goods being shipped outside
Florida.
Section 212.06(5)(a)1., F.S., provides an exemption from sales tax for the sale of tangible personal
property exported from Florida. Rule 12A-1.0015, F.A.C., provides guidance for this exemption.
Every retail sale made to a person physically present at the time of sale shall be presumed to
have been delivered in this state. The seller is not required to collect and remit tax to the
Department when the seller is required by the terms of the sales contract to deliver the item:
•
•
•
•

To a licensed exporter for exporting;
To a common carrier or forwarding agent for shipment outside Florida;
To the U.S. mail for mailing to a destination outside Florida; or
Using its own mode of transportation to a destination outside Florida.

To enjoy the protection of this exemption, a dealer is required to keep sufficient records to
document that the item was exported outside Florida, such as the list of examples provided in
Rule 12A-1.0015(2)(c), F.A.C. Examples of records to document sales for export to points outside
Florida include common carriers’ receipts, bills of lading, or similar documentation that evidences
the delivery destination, receipts from a licensed customs broker, and proof of export signed by
a customs officer. See Rule 12A-1.0015(2)(c), F.A.C.
The selling dealer’s documentation must indicate that the item(s) have been placed in the hands
of one of the accepted transporters listed above (such as a freight forwarder or licensed
exporter). This documentation must identify: 1) the item(s) sold; 2) the purchaser; and 3) the
ultimate destination of the item(s). In order for the documentation to satisfy the requirements
of the export exemption, the Department should be able to trace and identify the specific item(s)
sold and exported throughout the documentation. Additionally, Rule 12A-1.0015(2)(b), F.A.C.,
specifically provides that "[t]he intent of the seller and the purchaser to export the property is
not sufficient to establish that the property is not subject to tax in Florida." This rule further
provides that "[t]he delivery of the property to a location in Florida for subsequent export from
Florida is insufficient to establish documentary evidence that the property sold was irrevocably
committed to the exportation process." [Emphasis added].

Technical Assistance Advisement
August 21, 2020
Florida Department of Revenue
Page #4
Therefore, where 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.
Where documentation does not exist to show that tangible personal property “was exported”
outside Florida and was committed to the exportation process at the time of sale, and that the
exportation process was continuous and unbroken until the property was exported from Florida,
the dealer is liable for any tax due that was not collected.
Qualifying sales for export are exempt from tax and, if tax was paid, a refund may be available.
Based on the information provided, we are unable to state definitively whether your transactions
qualify for exemption. If you believe they qualify under the provisions explained above and a
refund is requested by Taxpayer or Client, documentation must be presented that clearly
demonstrates qualifying export sales for which refund is sought.
With regard to refunds, Section 215.26, F.S. only authorizes 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. Section 215.26(1),
F.S., specifically provides that the “Chief Financial Officer may only refund to the person who paid
same, or his or her heirs, personal representatives, or assigns, any moneys paid into the State
Treasury which constitute an overpayment or payment made in error.” An assignment of rights
provides the dealer’s assigns any right the dealer has to recover sales tax paid to the Department.
The three statutory circumstances for issuing a refund are (i) an overpayment of tax, (ii) payment
when no tax is due, and (iii) a payment of tax made in error. See s. 215.26(1)(a)-(c), F.S.
Section 215.26(2), F.S., further provides in pertinent part:
Application for refunds as provided by this section must be filed with the Chief
Financial Officer, except as otherwise provided in this subsection, within 3 years
after the right to the refund has accrued or else the right is barred. Except as
provided in chapter 198 and ss. 220.23 and 624.50921, an application for a refund
of a tax enumerated in s. 72.011, which tax was paid after September 30, 1994,
and before July 1, 1999, must be filed with the Chief Financial Officer within 5
years after the date the tax is paid, and within 3 years after the date the tax was
paid for taxes paid on or after July 1, 1999. (Emphasis added).
Accordingly, if a refund was due to Client for payment of tax when no tax is due, Taxpayer, as the
selling dealer who remitted the tax to the State of Florida, would first have to refund Client, then
seek a refund from the State of Florida. In the alternative, Client must obtain a validly executed

Technical Assistance Advisement
August 21, 2020
Florida Department of Revenue
Page #5
Assignment of Rights 1 from Taxpayer. Where Client obtains a validly executed Assignment of
Rights, Client is only entitled to the same rights as the selling dealer who granted the assignment.
Client must clearly demonstrate qualifying sales for export. Even with proper documentation, a
refund of sales tax is only available for transactions that occurred within three (3) years after the
right to the refund has accrued.
CONCLUSION
The sale of tangible personal property for export is exempt from tax if the transaction meets the
requirements set out above. If Taxpayer or Client seeks a refund from the Department, they
must be able to clearly demonstrate, with documentation, those qualifying sales for export.
Where no tax was due, Taxpayer must either refund sales tax to Client prior to seeking a refund
from the State of Florida or provide Client a properly executed Assignment of Rights. A refund
of sales tax is only available for transactions that occurred within three (3) years after the right
to the refund has accrued, regardless of documentation.
This response constitutes a Technical Assistance Advisement under section 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 section 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 that
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 section 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 Technical Assistance Advisement, 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 15 days of the date of this letter.
Sincerely,
/s/Felicia S.W. Thomas
Felicia S.W. Thomas, Esq.
Senior Attorney
Technical Assistance & Dispute Resolution
ID No. 234945
The Department has prescribed Form DR-26A, Assignment of Rights to Refund of Tax, for this purpose. A copy of
this form is available on the Department’s website at https://floridarevenue.com/forms under the ‘Refunds’
category.
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