Florida Taxability of Set Up and Delivery Fees

Set up fees charged to a customer by a taxpayer, who sells and rents equipment, were subject to Florida sales and use tax. When a set up fee is included as part of the charge for delivery, the lump sum amount for the delivery and set up is also subject to tax. Delivery charges for rented equipment were also taxable, since the taxpayer’s sales agreement and invoices did not specify whether the customer had an option regarding the delivery. Conversely, delivery charges for sold equipment were not taxable when the sales agreement provided that the stated price was F.O.B. at the taxpayer’s company location and delivery charges were separately stated. (Techincal Assistance Advisement, No. 09A-018, Florida Department of Revenue, April 3, 2009).

Posted on June 8, 2009