Sales Tax Texas

Every business owner is required to collect a sales tax from a buyer on all taxable items and services. Sales and Use Tax must be collected from the buyer and pay back to the Comptroller’s office. It is kind a withholding for the seller.

State of Texas imposes sales tax on:

• Retail sales
• Leases
• Rentals of most goods
• Taxable services

Use Tax Texas

Use tax is paid on storage, used and consumed  goods and out of state purchases. The State of Texas allows a credit for sales or use tax paid to other states. You will not pay use tax again, if you have already paid to the seller.

Sales and Use Tax License Electronically Filing

You can register sales and use tax in the state Texas with Texas Comptroller eSystems.

Texas sales tax, registration processing time

Comptroller office issues you a sales tax number instantly, but you receive the original certificate in 2-3 weeks.

How to apply for Texas Sales Tax Registration?

• Provide Name of the business is legally registered as a corporation, LLC, Sole Proprietor or your legal name.
• Provide business description in detail.
• Provide business address (PO Box is not acceptable).
• All owners' information, including name, address, social security number (not applicable for non US resident) and date of birth.
• Ownership percentage if more than one owner.
• Employer identification number if incorporated as a Corporation or an LLC (Not required, if it is registered for a sole proprietorship).
• Estimated monthly gross sales.
• The state may reject your application, if you owe sales tax to any of your prior business.
• You can request to the state for a duplicate copy, if you have lost your sales tax certificate.
• You will surrender the sales tax certificate and notify the state if planning to close the business.
• Purpose to Register Sales Tax Permit in Texas.
• Drivers's License Number including the state, it was issued from.

 Due dates to file Texas Sales and Use Tax

  For quarterly filers, reports are due on:
 

•     April 20 to report Jan. – March
•     July 20 to report April – June
•     Oct. 20 to report July – Sept.
•     Jan. 20 to report Oct. – Dec.
   

Monthly Filers

• Reporting date is the 20th of the following month

 Yearly Filers

• Due on January 20

Obligation of Sales Tax Permit Holder

• Display or post your permit on the work place
• Collect sales tax on taxable goods and services from buyer, according to the sales tax rate schedule post on the comptroller website.
• Pay use tax on all taxable purchases
• File sales tax returns on time along with the payment, if you owe.
• Proper record keeping is very important to share the auditors, in case you are under the audit.
• You must apply a separate sales tax permit for each location.
• A Sales tax license is not transferable and a new owner must obtain a new sales tax permit.
• You must surrender a sales tax permit, if you are no longer in business with the final sales tax return along with the payment, if you owe any taxes.
• Your information on the license must be current.
•  Sales and use tax license is not renewable, but we advise you to check with the state for the updated information to avoid cancellation of your certificate by the state.

How does a Non-US resident applies for a sales and use tax registration in Texas?

A Non-US resident applies for the Texas sales tax permit either by fax or mail with the Texas department of revenue, and at least two identifications are filed for the verification purpose. Electronic filing as not applicable for the State of Texas for a Non-US-Resident.