Resale Certificate vs Consumer’s Certificate of Exemption: Which One Do You Give Your Janitorial Supplier?
The short answer: they are two different certificates for two different buyers, and neither covers a business that simply uses the supplies. A Florida Annual Resale Certificate (DR-13) is for goods you will resell. A Consumer’s Certificate of Exemption (DR-14) is for a qualifying nonprofit or government buyer using supplies for its exempt purpose. If you are an office, restaurant or cleaning company buying supplies for your own use, you pay tax whichever folder the certificate sits in. Here is how to tell which one is yours, with the Florida Department of Revenue’s own rules behind it.
The three kinds of janitorial buyer
| You are… | Certificate | Tax on supplies |
|---|---|---|
| Reselling the goods (a store, a distributor, a supplier of your own customers) | DR-13 Annual Resale Certificate | None on the items you resell; use tax if you consume any |
| A 501(c)(3), church, school or government buying for its exempt purpose | DR-14 Consumer’s Certificate of Exemption | None, if the rules below are met |
| A business using supplies itself (office, restaurant, cleaning contractor) | Neither | 6% state tax plus county surtax |
The resale certificate (DR-13): only for what you sell on
Under Florida Rule 12A-1.039, a sale for resale is exempt only when the buyer is an active registered dealer and the goods will be resold to the dealer’s customers. The Department issues each registered dealer a new Annual Resale Certificate for every calendar year, and the rule requires the supplier to obtain a new one each year. A certificate from last January does not carry into this one.
The trap is the word resale. The Department’s cleaning-services publication (GT-800015) is blunt: cleaning service providers must pay sales and use tax, plus any discretionary surtax, on equipment, cleaning products, disinfectants, deodorizers and other supplies used or consumed in providing cleaning services. A janitorial contractor is not reselling chemicals; it is using them to deliver a taxable service. And the Department’s sales tax page adds that if you buy an item tax exempt intending to resell it and then use it in your business, you owe use tax. Our business accounts page covers how that plays out when a cleaning company opens an account; this article is the wider map.
The consumer’s certificate (DR-14): for exempt organizations
Rule 12A-1.038 says an organization the IRS treats as exempt under section 501(c)(3), a state or local government, and certain other qualifying entities must apply to the Department (Form DR-5) and receive a DR-14 before they can buy tax free. Several details catch buyers out:
- The IRS letter alone is not enough. The rule states that federal 501(c)(3) status is not sufficient to make tax-exempt purchases in Florida. You need the Florida DR-14.
- Another state’s certificate does not work. An exemption certificate issued by any other state is not sufficient in Florida.
- Dates matter. A DR-14 is valid from its issue date through its expiration date. A supplier who sells before the issue date or after expiry must collect tax.
- An LLC needs its own. An LLC that is itself 501(c)(3)-exempt must obtain a separate certificate even if its parent holds one.
- Use it for the exempt purpose, with the entity’s money. Purchases must be made with the entity’s funds. If a volunteer or employee pays with a personal card, the purchase is taxable, even if the entity reimburses them later. Governments can use a Florida government P-Card that shows the agency’s DR-14 number.
Suppliers are not guessing either. Under the same rule the seller can verify a DR-14 through the Department’s online Certificate Verification System, and a dealer who accepts a valid-looking certificate in good faith is protected. That is why a supplier will ask for a clean copy showing the legal name and dates.
What the tax actually is, in example dollars
Florida’s general state rate is 6%, and the county surtax is charged on top based on where the delivery lands. The Department’s DR-15DSS table lists 1% for Miami-Dade, Broward and Palm Beach in the edition we checked; it is republished each year, so confirm the current rate. Using 7% as example math on a $1,000 order:
| Buyer | Tax on $1,000 of supplies | Why |
|---|---|---|
| Church with a valid DR-14, paying by church check | $0 | Exempt purpose, entity funds |
| Same church, volunteer pays by personal card and is reimbursed | $70 | Personal funds make it taxable |
| Cleaning contractor with a DR-13 | $70 | Supplies are consumed, not resold |
| Reseller, but $100 of the order goes into its own shop | $7 use tax | Consumed portion is taxable |
At $24,000 a year of supplies, the same 7% is $1,680. That is why the certificate belongs in the account file before the first order, not after the first audit.
How to set it up with your supplier
- Decide which of the three buyers you are, and ask your accountant if the answer is unclear. A resale certificate does not cover supplies your staff use, and a nonprofit’s DR-14 does not cover an employee’s personal card.
- Send the certificate with the legal name that will appear on the invoice, plus the delivery addresses.
- Diarize the renewal: a new DR-13 each calendar year, and the DR-14 expiration date.
- Pay from the entity’s account, by check, ACH, card in the entity’s name or purchase order, so the funds test is easy to prove.
We are a supplier, not your tax adviser. Our account setup applies the exemption certificate you send, and only to the categories you tell us it covers. Schools and daycares can start with the schools buyer page, and cleaning companies with the cleaning company page. To see how much of your spend is taxable in the first place, run it through the supplies calculator. For the pricing side of the same decision, see case vs retail pricing.
FAQ
Can a cleaning company use its resale certificate to buy chemicals and supplies?
Generally no. The Florida Department of Revenue says cleaning service providers must pay sales and use tax on cleaning products, disinfectants and other supplies used or consumed in providing cleaning services. A resale certificate covers only goods you resell.
Is a 501(c)(3) determination letter enough to buy tax free in Florida?
No. Florida Rule 12A-1.038 states that federal 501(c)(3) status is not sufficient. The organization needs a Florida Consumer’s Certificate of Exemption (DR-14) that is current on the date of the sale.
Can a volunteer buy supplies on a personal card and be reimbursed tax free?
No. Under Rule 12A-1.038, if an authorized representative pays with personal funds the purchase is taxable, even if the entity reimburses the person afterwards.
How often does my supplier need a new certificate?
A resale certificate is issued per calendar year, so a new copy is needed each year. A DR-14 is good through the expiration date printed on it. Your supplier can verify either through the Department of Revenue.