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Tax on classes

Posted: Wed Oct 09, 2019 9:41 am
by p7fl
Never seen this before.
Added a one day class to my schedule for December. The web-site store added Florida sales tax.
I've taken a lot of classes over the years and have always seen 1 price and paid by check. Tax may have been included in the one price.

Should tax be charged on software such as a class?
TIA
jon

Re: Tax on classes

Posted: Wed Oct 09, 2019 12:20 pm
by MARK
The usual way things work is there are tax on materials but not labor. And I'd think that a class is more like a Service (labor) than physical items.

Re: Tax on classes

Posted: Wed Oct 09, 2019 1:57 pm
by joel
Lump sum Tuition
When programs at UNF charge a lump-sum amount for tuition including payment for fees, books, supplies, or any other property required of a particular course or program, sales tax is required to be collected and remitted on the sale of tangible personal property sold to program participants.

When programs at UNF charge a lump-sum amount for tuition including payment for fees, books, supplies, or any other property required of a particular course or program, sales tax is required to be collected and remitted on the sale of tangible personal property sold to program participants. When including charges for tangible personal property (such as textbooks) as part of a lump-sum charge, there are two options:

UNF may pay sales tax at the time of purchasing the tangible goods (textbooks, etc.) by not using its exemption certificate at the time of purchase. In this case there is no need to separately charge students for the distribution of the tangible goods as part of a lump-sum tuition payment. It is important to retain documentation (i.e., receipts) showing UNF paid sales tax on its purchase of the tangible property in case of future DOR audit.
UNF can use its tax-exempt certificate at the time of purchasing the tangible goods (i.e., textbooks) then charge the students sales tax on the value of the tangible goods provided as part of the lump-sum tuition payment. UNF must establish a sales price for the tangible personal property portion of the lump-sum tuition charge and collect/remit sales tax.