Sales Tax Policy
Florida charges tax on some labor especially when there is software maintenance involved at a client's physical location. The only exemption is if software maintenance labor is electronic in nature or delivered.
States like Florida, that don't have income tax tend to be more aggressive about taxing certain types of labor.
Global Presence accountant has advised us to charge tax on labor that is both tangible or requires visitation. The only exception is nonprofit organizations or the electronic delivery of software as service.
Please consider these articles:
- Sales Tax Handbook
- Software Maintenance Contracts Subject to Sales Tax
- IF PARTS ARE INCLUDED, LABOR IS SUBJECT TO SALES TAX
- Determining Florida Sales and Use Tax for Contractors