NEWS & INSIGHTS
How Out-of-State Sales Create Florida Nexus and Trigger Sales Tax Audits
Many out-of-state businesses think they’re off the radar in Florida. But thanks to the U.S. Supreme Court’s South Dakota v. Wayfair, Inc. decision and Florida’s 2021 adoption of economic nexus, that’s no longer true. If your business sells more than $100,000 worth of goods or services into Florida in a calendar year, you’re required to register, collect, and remit Florida sales tax—even if you don’t have a physical presence in the state.
Failure to comply with Florida’s nexus rules is one of the most common triggers for sales tax audits—especially for online retailers, wholesalers, and service providers selling remotely.
Florida’s Economic Nexus Threshold
As of July 1, 2021, out-of-state businesses must collect and remit Florida sales tax if they meet either of the following conditions in the previous calendar year:
- Over $100,000 in retail sales to Florida customers (including taxable sales)
- Sales facilitated through a marketplace provider exceeding the same threshold
This includes online sales, drop shipments, and remote service offerings. Once you cross the threshold, you’re required to register with the Florida Department of Revenue and begin filing Form DR-15 monthly or quarterly.
Why Nexus Triggers Audits
When a remote seller doesn’t register or file, Florida views this as a compliance failure—even if the omission was unintentional. The Department may discover the business through:
- Federal data sharing
- Use tax audits of Florida customers
- Sales records from marketplace facilitators
- Shipping records from carriers
Once discovered, unregistered sellers often face multi-year audits, back assessments, penalties, and interest—especially if the business failed to collect sales tax from Florida customers who can’t be retroactively billed.
Common Businesses That Trigger Nexus Audits
- E-commerce sellers with Shopify, WooCommerce, or BigCommerce storefronts
- Amazon FBA sellers with Florida customers
- Wholesalers or manufacturers shipping direct to Florida
- Out-of-state service providers with Florida clients
- Subscription-based businesses with recurring Florida revenue
What to Do If You’ve Triggered Nexus
- Register promptly: Don’t delay filing once you pass the threshold. Late registration may be seen as willful neglect.
- Analyze historical exposure: You may owe back tax, interest, and penalties. A tax attorney can help assess the scope.
- Consider voluntary disclosure: If you haven’t been contacted by FDOR, the Voluntary Disclosure Program can reduce penalties and limit lookback periods.
- Review multistate obligations: Florida may not be the only state where you have nexus—especially after Wayfair.
We Help Remote Sellers Navigate Florida Nexus
If you’re an out-of-state seller doing business in Florida, you may already be on the FDOR’s radar. Don’t wait until you receive an audit notice. At Moffa Tax Law, we help businesses assess risk, come into compliance, and defend against Florida sales tax audits tied to economic nexus. Whether you need registration support or representation during an audit, we’re here to help.
Interested in learning more about sales tax audit defense? Check out our Sales Tax Audit Defense – Ultimate Business Guide.
Moffa Tax Law | Florida State and Local Tax Attorneys
© 2025 Jeanette Moffa. All Rights Reserved.
Economic nexus means a business must collect Florida sales tax if it sells over $100,000 in goods or services into Florida during the previous calendar year—even without a physical presence in the state.
Florida's economic nexus law became effective July 1, 2021. It was passed in response to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc.
If your total retail sales into Florida exceed $100,000 in the previous year, you are required to register and collect Florida sales tax, even if your business is located elsewhere.
Florida uses data from shipping companies, audits of Florida customers, federal records, and marketplace facilitator reports to identify unregistered out-of-state sellers.
Noncompliant businesses may be assessed back taxes, interest, and penalties going back several years—even if the undercollection was unintentional.
Yes. Exempt sales still count toward the $100,000 threshold. You may not owe tax on them, but they can still trigger nexus and the obligation to register.
Yes. If you should have registered in prior years but didn’t, Florida may audit and assess taxes for those earlier periods, especially if they view your failure as negligent or willful.
Online retailers, wholesalers, software providers, subscription services, and remote service providers with Florida customers are common targets for nexus audits.
You may be eligible for Florida’s Voluntary Disclosure Program, which reduces penalties and limits lookback periods if you act before FDOR contacts you.
If a marketplace facilitator like Amazon or Etsy collects tax for you, you may not need to register separately for those sales—but you must track your total Florida sales for nexus purposes.
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Jeanette Moffa, Esq.
(954) 800-4138
JeanetteMoffa@MoffaTaxLaw.com
Jeanette Moffa is a Partner in the Fort Lauderdale office of Moffa, Sutton, & Donnini. She focuses her practice in Florida state and local tax. Jeanette provides SALT planning and consulting as part of her practice, addressing issues such as nexus and taxability, including exemptions, inclusions, and exclusions of transactions from the tax base. In addition, she handles tax controversy, working with state and local agencies in resolution of assessment and refund cases. She also litigates state and local tax and administrative law issues.