Texas Comptroller of Public Accounts

Texas Comptroller of Public Accounts, Glenn Hegar

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Sales Tax Refunds
Permitted Sellers

Before Requesting a Refund, a Seller Must:

Obtain a properly completed exemption certificate (PDF, 57KB) or resale certificate (PDF, 57KB)), from the purchaser from whom the tax was collected in error, and either:

  • refund to the purchaser the tax collected in error, or
  • provide a credit to the purchaser for the tax collected in error (with the purchaser's written consent)

The Comptroller will not refund tax, penalty or interest to a permitted seller who collected tax in error from a purchaser until the above requirements have been satisfied.

After the seller has refunded or credited the tax, the seller may:

  • take a credit, in the amount of the refund or credit, on a future sales tax return, or
  • amend the return to take a credit for the period in which the sales tax was paid, or
  • request a refund from the Comptroller.

Taking a Credit on a Future Return, or Amending a Return

You must file the long form return (01-114) (PDF, 255KB) to take a credit on a return, even if you normally file short form. Check “yes” on item j, then reduce the amount of taxable sales on line 2 by the purchase price of the items on which tax was paid in error. The reductions in taxable sales should be based on the price paid for the goods or services not including the tax. You must also report the total amount of credit taken and the earliest date of the tax paid in error on a supplemental return (PDF, 41KB).

A permitted seller cannot claim a credit for a local taxing jurisdiction unless the purchaser has previously reported that jurisdiction on its tax return. Instead, a claim for refund must be filed with the Comptroller.

You can also amend the original return you filed by writing “Amended Return” on the top of the form and entering the correct amounts on the return.

Taxable Items Returned to the Seller

If a purchaser returns a taxable item to a permitted seller, the seller can claim a credit or request a refund of tax, equal to the amount refunded to the purchaser, when the purchaser receives a full or partial refund of the sales price of the item returned to the seller.

Sellers can Assign their Right to Refund to a Purchaser

A permitted seller can assign a right to refund to the purchaser from whom the tax was collected in error. Instead of giving the purchaser a refund of tax paid in error and then seeking a refund from the Comptroller, a permitted seller can give the purchaser an assignment of right to refund by completing the Assignment of Right to Refund form (00-985) (PDF, 20KB). The purchaser can then file a refund claim directly with the Comptroller by submitting the required information.

Assignees of and Successors to Permitted Sellers

A permitted seller’s right to a refund may be assigned to a third party such as a creditor, settlement trustee, or successor entity. The Comptroller will grant or deny a refund claimed by a third party assignee on the same basis as if it had been claimed by the original seller. The third party assignee must comply with the same requirements as the original seller when filing any refund claim, including the requirement to refund or credit tax paid in error to any purchasers.

Required Plug-ins

In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Microsoft Internet Explorer, Google Chrome and Apple Safari.