Service guarantees sold to residents outside the state or outside the country are subject to the national VAT rate of 6%. The discretionary replacement sales tax (Surtax) does not apply when the vehicle is registered or authorized in another state or country. However, if the non-resident registers the vehicle in Florida, the additional tax is applied at the rate imposed by the borough where the vehicle is registered. Consumers do not pay for repairs covered by a service contract. However, consumers must pay turnover tax on additional costs for repairs that are not covered by the service contract. .