When did out-of-state exhibitors at Florida art and design trade shows have to collect sales tax on orders taken during the shows?

Plain-English summary

Florida ruled that the delivery destination—not whether the customer paid in full at the show—controlled the four order scenarios presented. Properly documented orders shipped outside Florida by U.S. Mail or common carrier were exempt export sales. Orders delivered in Florida were taxable.

The ruling covered an art and antique fair and a contemporary art and design fair held at a Florida convention center. The exhibitors were typically out-of-state dealers with no Florida office, employees, agents, or property apart from their temporary show presence.

Orders shipped outside Florida

An order taken during the show qualified for the export exemption when the seller was required to mail the goods or deliver them to a common carrier for final shipment to a destination outside Florida. The answer was the same whether the exhibitor received only a deposit or full payment at the show.

Intent alone was not enough. The export process had to be continuous and unbroken, and the exhibitor had to keep records showing the goods and destination, such as postal receipts, carrier receipts, bills of lading, or comparable documentation.

Orders delivered in Florida

Orders taken at the show for future delivery in Florida were taxable on the full retail price. Section 212.06(1)(a) made the full tax due at the transaction even when payment was deferred.

Goods accepted by the purchaser at the show were also taxable. A purchaser's plan to carry property out of Florida did not create an export sale after Florida delivery.

Retail exhibitors had to register

An exhibitor authorized to make taxable retail sales at a trade show had to register as a dealer and collect tax. The ruling addressed sales during the shows only; the sponsor withdrew its questions about pre-show and post-show sales.

What this means for you

Trade-show exhibitors

Write delivery obligations into the sale contract and retain export records. Taking full payment in Florida does not by itself make an out-of-state shipment taxable, but releasing the goods to the buyer in Florida does.

Art and antique dealers

Keep the artwork or merchandise under the seller's control until it enters U.S. Mail or a common carrier's continuous out-of-state shipment. Customer pickup at the booth is a Florida delivery.

Trade-show organizers

Exhibitor agreements determine registration duties. Agreements authorizing retail sales require exhibitors to register and collect on taxable transactions.

Common questions

Q: Is an order shipped to a non-Florida address taxable?
A: Not when it is properly committed to export by mail or common carrier and documented.

Q: Does receiving full payment at the show make an out-of-state shipment taxable?
A: No. Payment timing did not change the export result.

Q: Is an order delivered later to a Florida address taxable?
A: Yes, on the full retail sales price, even if payment is deferred.

Q: What if the customer takes the goods at the show?
A: The sale is taxable because delivery occurred in Florida.

Q: Did the ruling cover orders made before or after the shows?
A: No. Those questions were withdrawn.

Citations and references

• Fla. Stat. § 212.18(3)(e) — trade-show exhibitor registration and collection
• Fla. Stat. § 212.06(1)(a) — tax timing for deferred-payment sales
• Fla. Stat. § 212.06(5)(a) — export sales
• Fla. Admin. Code r. 12A-1.0015(2) — continuous export process and documentation
• Fla. Stat. § 212.0596 — mail-order sales provision cited in the advisement
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 04A-018

Original ruling text

SUMMARY

QUESTION ONE: Are trade show exhibitors required to collect
tax on orders taken from nonresidents at the trade show,
when the property is to be delivered outside the state by
U.S. Mail or common carrier and the exhibitor does not
receive full payment at the show?

ANSWER - Based on Facts Below: No. Orders taken for goods
that will be delivered outside Florida by U.S. Mail or
common carrier qualify for an exemption under Section
212.06(5)(a), F.S.

QUESTION TWO: Same as Question One, but the exhibitor does
receive full payment for the goods at the show.

ANSWER - Based on Facts Below: No, tax is not due on goods
that will be delivered outside of Florida by U.S. Mail or
common carrier, regardless of whether the seller receives
full payment for the goods in Florida.

QUESTION THREE: Are trade show exhibitors required to
collect tax on orders taken from Florida residents at the
trade show, when the property is to be delivered into
Florida by U.S. Mail or common carrier, but the exhibitor
does not receive full payment at the show?

ANSWER - Based on Facts Below: Yes. Section 212.18(3)(e),
F.S., provides that an exhibitor that is authorized to make
retail sales at a trade show is required to register as a
dealer and collect tax. Section 212.06(1)(a), F.S., states
that the full amount of tax on a sale made under any kind
of deferred payment plan is due at the moment of the
transaction.

QUESTION FOUR: Same as Question Three, but the exhibitor
does receive full payment for the goods at the show.

ANSWER - Based on Facts Below: Yes, based on the
explanation given in the answer to Question Three.

Mar 11, 2004

Re: Technical Assistance Advisement 04A-018
XXX ("Client")
Sales Made by Trade Show Exhibitors
Sections: 212.06, 212.18, and 212.0596, F.S.
Rules: 12A-1.0015, F.A.C.

Dear:

This is a response to your letter dated December 4, 2003 ["the
first letter"], in which you have requested a Technical
Assistance Advisement on sales made by trade show exhibitors.
That letter has been carefully examined and the Department finds
it to be in compliance with the requisite criteria set forth in
Chapter 12-11, F.A.C. This reply constitutes a Technical
Assistance Advisement ("TAA") and is issued to you under the
authority of Section 213.22, F.S.

You originally requested an advisement on several types of sales
made by exhibitors to both residents and non-residents. You
stated that your client would disseminate this advisement to
exhibitors participating in the two shows sponsored by your
client and would also disseminate it to prospective exhibitors.
In a telephone conversation and follow-up letter dated February
27, 2004 ["the second letter"], you state that your client
wishes to withdraw that portion of the original request
pertaining to sales made by exhibitors before and after the
trade shows. Your client wishes to proceed with the request
pertaining to sales made during the trade shows. Based on these
requests, the issue of sales made during a trade show is the
only issue that will be addressed in this TAA.

Stated Facts

In the first letter you state that your client sponsors two
shows that are the subject of this ruling. One show is termed
an "art and antique fair" and the second show is termed a

"contemporary art and design fair." Both of these shows will be
held in a convention center located in Florida. You state that
these shows are "hybrid" trade shows and public shows, in that
the shows cater both to the art, antique and design industries
and to the general public. In TAA 02A-006, issued January 30,
2002, the Department determined that both shows are "trade
shows" within the meaning of Section 212.031(5), F.S.

The first letter further states that your client solicits
exhibitors to display their wares at these shows, and that the
exhibitors are typically out-of-state dealers who have no
offices, employees, agents, or property in Florida except during
the shows. The exhibitors ship their wares to the shows 2-3 days
prior to the scheduled opening of the shows; set up their booths
1-2 days prior to the shows; and break down their booths within
one day following the end of the shows. The exhibitors may make
sales during the shows, prior to the shows, or after the shows.

Regarding the sales made by exhibitors during the shows, your
letter states:

... The exhibitors are not prohibited by their agreements
with [client] from making retail sales of tangible personal
property at these shows.... During the shows, the out-ofstate exhibitors properly secure temporary sales tax
registration certificates pursuant to Section 212.18(3)(e),
[F.S.], and Rule 12A-1.060(4), [F.A.C.], and collect and
remit Florida sales tax on all taxable sales made during
the show.

One aspect of this TAA request is determining when the
Department will deem a taxable sale to have been made by an
exhibitor at a show. [Client] requests that the Department
determine whether an exhibitor must collect Florida sales
tax on the following transactions:

1. Exhibitor takes an order for merchandise at the
   show for future delivery by common carrier or U.S.
   Mail outside Florida, but does not receive full
   payment at the show;

2. Same as Example 1 above, except the exhibitor does
receive full payment at the show;

3. Exhibitor takes an order for merchandise at the
   show for future delivery by common carrier or U.S.
   Mail in Florida, but does not receive full payment at
   the show; and

4. Same as Example 3 above, except the exhibitor does
   receive full payment at the show ....

You have included a copy of the fairs' timetables and the
standard exhibitor agreements for our review. As stated above,
the second letter states that your client wishes to proceed only
on the issue of sales made during the trade shows and wishes to
withdraw the issues of sales made prior to and following the
trade shows.

Taxpayer's Position

You argue that an out-of-state exhibitor participating in the
two shows does not have an obligation to collect and remit
Florida sales tax on the in-show sales to be delivered outside
of Florida [the transactions described in Examples 1 and 2,
above], because those transactions constitute exempt export
sales. You state that the exhibitor does have an obligation to
collect and remit Florida sales tax on those in-show
transactions to be delivered into Florida [those transactions
described in Examples 3 and 4, above].

Applicable Authority and Discussion

Section 212.18(3)(e), F.S., states:

(e) As used in this paragraph, the term "exhibitor" means a
person who enters into an agreement authorizing the display
of tangible personal property or services at a convention
or a trade show. The following provisions apply to the
registration of exhibitors as dealers under this chapter:

1. An exhibitor whose agreement prohibits the sale of

tangible personal property or services subject to the tax
imposed in this chapter is not required to register as a
dealer.

2. An exhibitor whose agreement provides for the sale at
   wholesale only of tangible personal property or services
   subject to the tax imposed in this chapter must obtain a
   resale certificate from the purchasing dealer but is not
   required to register as a dealer.

3. An exhibitor whose agreement authorizes the retail sale
   of tangible personal property or services subject to the
   tax imposed in this chapter must register as a dealer and
   collect the tax imposed under this chapter on such sales.

4. Any exhibitor who makes a mail order sale pursuant to s.
   212.0596 must register as a dealer.

Any person who conducts a convention or a trade show must
make their exhibitor's agreements available to the
department for inspection and copying.

Section 212.06(1)(a), F.S., states in part:

... The full amount of the tax on a credit sale,
installment sale, or sale made on any kind of deferred
payment plan shall be due at the moment of the transaction
in the same manner as on a cash sale.

Section 212.06(5)(a), F.S., states in part:

(5)(a)1. Except as provided in subparagraph 2., it is not
the intention of this chapter to levy a tax upon tangible
personal property imported, produced, or manufactured in
this state for export, provided that tangible personal
property may not be considered as being imported, produced,
or manufactured for export unless the importer, producer,
or manufacturer delivers the same to a licensed exporter
for exporting or to a common carrier for shipment outside
the state or mails the same by United States mail to a
destination outside the state.... Every retail sale made to

a person physically present at the time of sale shall be
presumed to have been delivered in this state.

Rule 12A-1.0015(2), F.A.C., states in part:

(2) SALES OF PROPERTY IRREVOCABLY COMMITTED TO EXPORTATION.

(a) A dealer is required to collect tax on sales of
tangible personal property when the property is delivered
to the purchaser or the purchaser's representative in
Florida, whether the disclosed or undisclosed intention of
the purchaser is to transport the property to a location
outside Florida, or whether the property is actually so
transported. Every sale of tangible personal property to a
person physically present at the time of sale is presumed
to have been delivered in Florida.

(b) 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. The 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. The 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. The following are examples of 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.

(c) Any dealer who makes tax-exempt sales of tangible
personal property for export outside Florida is required to
maintain records to document that the property is committed
to the exportation process at the time of sale and that the
exportation process is continuous and unbroken until the
property is exported from Florida. The dealer is required
to maintain records that identify the tangible personal
property sold and the delivery destination of the property.
The documentation must clearly establish that the property
was not commingled with the mass of property within
Florida. If the purchaser exercises any act of dominion or
control that would constitute "use" of the property by the
purchaser in Florida within the meaning of that term set
forth in s. 212.02(20), F.S., the property was not
irrevocably committed to the exportation process. Examples
of records to document sales for export to points outside
Florida are:

1. Internal delivery orders identifying the property sold
   and the destination and date of delivery that are supported
   by receipts of expenses incurred in delivering the
   property, such as trip tickets or truck logs signed by the
   person who delivers the property;

2. United States Postal Service parcel post receipts with
   supporting documentation identifying the property and the
   destination;

3. Common carriers' receipts, bills of lading, or similar
   documentation that evidences the delivery destination;

4. Export declaration;

5. Receipts from a licensed customs broker; or

6. Proof of export signed by a customs officer.

Orders taken at the shows for merchandise to be delivered
outside Florida would qualify for the export exemption under
Section 212.06(5)(a), F.S. The exhibitors are required to keep
proper documentation to support the exemption, as detailed in
Rule 12A-1.0015(2), F.A.C., quoted above. Orders taken at the
shows for merchandise to be delivered into Florida are fully
taxable, regardless of whether the exhibitor receives full
payment at the time the order is placed.

Advisements

All sales made by exhibitors during the shows, where the
merchandise is accepted by the purchaser, are taxable. Orders
taken by exhibitors during the shows are taxable on the full
retail sales price, whether or not full payment is received at
the show, when the merchandise is to be delivered in Florida.
Orders taken that will be shipped to non-Florida addresses are
not taxable under the export exemption in Section 212.06(5)(a),
F.S. The exhibitors are required to keep proper documentation
to support the exemption.

Closing Statement

This response constitutes a Technical Assistance Advisement
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 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.

If you have any further questions with regard to this matter and
wish to discuss them, you may contact me directly at (850) 4889669.

Sincerely,

Tammy S. Manke
Attorney
Technical Assistance & Dispute Resolution

Control No: 57875