Could a seller rely on customers' Florida export exemption certificates without separately proving each shipment left the state?

Subject

Exemption Certificates

Plain-English summary

The seller could accept the two customers' completed blanket exemption certificates and did not need separate proof that each purchase was exported. Both customers held valid Florida export sales tax numbers and certified that the purchases were for export.

The seller was registered in Florida but located outside the state. Goods shipped from Florida either went to one customer's Florida freight forwarder or directly to the other Florida customer. Ordinarily, delivery in Florida requires strong documentation of an uninterrupted export process.

Florida treated holders of its export sales tax numbers as licensed exporters under the cited case. Because the Department confirmed the numbers and found the submitted Purchaser's Blanket Resale and Exemption Certificates compliant, the certificates relieved the seller from gathering the additional dock receipts, bills of lading, or other export proof described in the export rule.

What this means for you

The ruling did not approve reliance on any paper labeled “exempt.” The seller had Department-verified export numbers and reviewed certificates containing the registration and transaction information required by rule. Sellers should validate current credentials and preserve the certificates for audit.

Common questions

Q: Was delivery to a Florida freight forwarder automatically exempt? No. The ruling relied on the purchaser's valid export number and compliant exemption certificate, not delivery location alone.

Q: Did the seller need a bill of lading or shipper's export declaration for these sales? Not under the specific certificate facts approved in the ruling.

Q: Could an incomplete certificate provide the same protection? No. The Department said the certificates had to meet Rule 12A-1.038's completion requirements.

Citations and references

• Fla. Stat. § 212.06(5)(a)1. — delivery to a licensed exporter or carrier for export
• Fla. Admin. Code r. 12A-1.038(1), (3)-(5) — required resale and exemption certificate information
• Fla. Admin. Code r. 12A-1.064(1) — delivery in Florida and uninterrupted export documentation
• Graybar Electric Co. v. Department of Revenue, 347 So. 2d 718 (Fla. 3d DCA 1977)
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 98A-054

Original ruling text

SUMMARY

The Taxpayer is located out of state but licensed to
collect sales tax in Florida. The product sold is shipped
from a Florida location to a customer's freight forwarder
in Florida or direct to a Florida customer. Both
customer's have provided you with a copy of an exemption
certificate in lieu of paying Florida sales tax. The
Taxpayer questions whether the exemption certificated
provided are sufficient documentation to exempt these
customers from Florida sales tax, and relieve such company
from obtaining proof of the export of the same. The
Department determined that both customers held a valid
export sales tax number. These customers completed a
Purchaser's Blanket Resale and Exemption certificate,
claiming each sale for export. Therefore, the exemption
documentation required under Rule 12A-1.064, F.A.C., is not
necessary to support the company's actions.

Jul 14, 1998

Re: Technical Assistance Advisement 98(A)-054
Sales and Use Tax - Exemption Certificates
Section 212.06, F.S.
Rules 12A-1.038, 12A-1.064, F.A.C.

Dear :

This is a response styled a Technical Assistance Advisement, to
your letter dated XXX, concerning the above referenced matter.
Your correspondence has been carefully examined and the
Department finds it to be in compliance with the criteria set
forth in Chapter 12-11, F.A.C. This response to your request
constitutes a TAA and is issued to you under the authority of s.
213.22, F.S.

Stated Facts

The following facts were provided in your letter:

You are licensed to collect sales tax in Florida. The product
you sell is shipped from a Florida location to your customer's
freight forwarder in Florida. Your customer is located in New
York. The customer has provided you with a completed
Purchaser's Blanket Resale and Exemption Certificate which
provides their Florida registration number. A copy of the
exemption certificate was submitted for review.

You further indicate that often, the product you sell is shipped
from a Florida location to your customer who is located in
Florida. They too, provided you with a completed Purchaser's
Blanket Resale and Exemption Certificate which provides their
Florida registration number. A copy of the exemption
certificate was submitted for review.

Requested Advisement

Are the exemption certificates attached sufficient documentation
to exempt these customers from Florida sales tax, and relieve
your company of the responsibility of collecting and remitting
Florida sales tax on such transactions and to relieve your
company from obtaining proof of the export for the same?

Law and Analysis

Rule 12A-1.038, F.A.C., has been promulgated by the Department
to alert dealers as to the required information which must be
stated on any resale and exemption certificate extended to a
vendor when a dealer is making an exempt purchase of otherwise
taxable tangible personal property. This rule provides
requirements in subsections (1), (3), (4), and (5), with the
relevant language reading as follows:

12A-1.038 Resale and Exemption Certificates.

(1) It is the specific legislative intent that each and
every sale, admission, use, storage, consumption, or rental
is taxable under Chapter 212, F.S., unless such sale,
admission, use, storage, consumption, or rental is

specifically exempt. The exempt status of the transaction
must be established by the dealer. Unless the dealer shall
have taken from the purchaser a certificate signed by the
dealer or the dealer's authorized representative to the
effect that the property or service was purchased for
resale and bearing the name and address of the purchaser,
the effective date of the certificate and the number of his
dealer's certificate of registration, or a certificate
signed by an authorized representative of the organization
bearing the number of the organization's consumer's
exemption certificate, and the effective date of the
certificate, and the expiration date of the certificate,
the sale shall be deemed to be a taxable sale at retail....

(3)(a) A resale certificate is required from every
purchaser who purchases tangible personal property or
service for resale, subject to the provisions of subsection
(1) of this rule. Otherwise, the dealer will be required
to collect and remit the tax to the Department of
Revenue....

(c) Purchases for resale outside the State of Florida by
unregistered, out-of-state dealers are governed by Rule
12A-1.064(2)(b), F.A.C....

(4) A dealer shall refuse to accept a resale certificate,
except as provided in Rule 12A-1.064(2)(b), F.A.C., and
shall collect the tax unless the purchaser has obtained a
dealer's certificate of registration from the Department of
Revenue and the number of his dealer's certificate of
registration is stated on the resale certificate.

(5)(a) Any resale certificate containing the statement to
the effect that a purchase is for resale which contains the
date, purchaser's name, address, dealer's certificate of
registration number, effective date of the certificate, and
the dealer's or authorized representative's signature shall
be sufficient compliance with the law only to the extent
provided by this rule. Such certificate shall show that
the property or service was purchased for resale or for
incorporation as a material part of other tangible personal

property to be produced for resale by manufacturing,
assembling, processing, or refining, or for some other
purpose which is exempt under the law. Resale certificates
may be given only by a purchaser who has obtained a
dealer's certificate of registration from the Department of
Revenue....

Section 212.06(5)(a)1., F.S., provides in part:

(5)(a)1. ... [I]t 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;....

Rule 12A-1.064(1)(a), (b)2., F.A.C., provides:

(1)(a) Sales tax is imposed on the sales price of each item
or article of tangible personal property, unless otherwise
exempt, when the property is delivered to the purchaser or
his representative in this state. However, the tax does
not apply to tangible personal property irrevocably
committed to the exportation process at the time of sale,
when such process has been continuous and unbroken.

(b) Intent of the seller and the purchaser that the
property will be exported is not sufficient to establish
the exemption; nor does delivery of the property to a point
in Florida for subsequent transportation outside Florida
necessarily constitute placing the property irrevocably in
the exportation process. Tangible personal property shall
be deemed committed to the exportation process if:...

2. The dealer is required by the terms of the sale contract
   to deliver the goods to a common carrier for final and
   certain movement of such property to its out of state

destination. Sales by a Florida dealer are exempt when the
dealer delivers the merchandise to the transportation
terminal for shipment outside this state and secures a dock
or warehouse receipt and a copy of the bill of lading. On
shipments to points outside the United States, a shipper's
export declaration shall also be obtained;....

The purchase for export issue was specifically addressed by the
Third District Court of Appeal in the matter of Graybar Electric
Company, Inc. v. Department of Revenue, 347 So.2d 718 (Fla. 3
DCA 1977). In this case, the Court held, in the absence of any
other formalized state export-licensing procedures, corporations
having export sales tax numbers issued by the Department of
Revenue were "licensed exporters" for purpose of statute which
exempts from state sales tax tangible personal property
manufactured for export and delivered for exporting to a
"licensed exporter"; therefore, goods manufactured and sold in
Florida and delivered to such corporations for shipment to a
foreign buyer were not subject to state sales tax.

The Department's records indicate that each of your customers
holds a valid export sales tax number. These customers have
provided the Purchaser's Blanket Resale and Exemption
Certificate, claiming each sale for export. Therefore, the
exemption documentation required under rule 12A-1.064(1)(b)2.,
F.A.C., is not necessary to support your company's actions.

Response

The Department concludes that the exemption certificates are
sufficient documentation to exempt these customers from Florida
sales tax. The Department also agrees that the completed
Purchaser's Blanket Resale and Exemption Certificate evidences
an exempt purchase of otherwise taxable tangible personal
property and relieves your company from any additional
responsibility of obtaining proof of the export sale.

Rule 12A-1.038, F.A.C., which deals with Florida resale and
exemption certificates, specifically identifies the requirements
for proper completion of the Purchaser's Blanket Resale and
Exemption Certificate. The Purchaser's Blanket Resale and

Exemption Certificates provided to you by your customers must
meet those requirements in order to be in strict compliance with
the rule. Based on the applicable rule, both certificates
included with your correspondence are in compliance and should
be presented and accepted in case of audit.

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 and your request are
public records under Chapter 119, F.S., which are subject to
disclosure to the public under the conditions of s. 213.22, F.S.
Your name, address, and any other details which might lead to
identification of the taxpayer must be deleted by the Department
before disclosure. In an effort to protect confidential
information, we request you notify the undersigned in writing
within 15 days of any deletions you wish made to the request or
this response.

Sincerely,

Janet Cumbie
Tax Law Specialist
Technical Assistance & Dispute Resolution
(850)922-4847

JCC\
Control No: 34479