Texas Sales and Use Tax
Frequently Asked Questions
Browse Questions by Topic
- Obtaining a Sales Tax Permit
- Sales Tax Collection
- Reporting and Remittance
- Purchases/Use Tax
- Buying, Selling, or Discontinuing a Business
- Resale Certificates
- Exemption Certificates/Exempt Organizations
- Shipped out of Texas/Exports
- Keeping Records
- Electronic Cigarettes and Cigarettes
Other Tax-related FAQs
Obtaining a Sales Tax Permit
- Who is required to hold a Texas sales and use tax permit?
- What is tangible personal property?
- What is engaged in business?
- How do I get a sales tax permit number?
- Is there a fee charged for a sales tax permit?
- If my business doesn't have a federal identification number yet, can I still apply for a sales tax permit?
- Do I need more than one permit?
- Can I use the sales tax permit number from my old business or from an existing business that I purchased?
- If the ownership of my business changes, is a new permit needed?
- If I am no longer in business, can I keep my seller's permit?
- Should I tell the Comptroller's office if I change my business address or mailing address?
- Am I required to register to pay other taxes?
- Are my business records subject to audit?
- Once I have obtained a sales tax permit, what are my obligations as a permit holder?
- Why are you giving telemarketers my business telephone number?
Sales Tax Collection
- What is taxable?
- How much sales tax do I collect from my customers?
- What tax rate do I use?
- Am I required to separately state the sales tax amount to my customers?
- Is rounding permitted when computing sales tax?
- If I do not collect the sales tax or collect an incorrect amount, who is responsible for paying sales tax to the Comptroller's office?
- Are barters and exchanges taxable?
- Are delivery or shipping charges taxable?
- Where can I get more information?
Reporting and Remittance
- What is a sales and use tax return?
- When do I file the tax return form?
- If I cannot file my return or pay the tax on time, can I request an extension?
- What happens if I file a late tax return or my tax payment is overdue?
- If I don't owe taxes, do I still file a return?
- How do I pay the taxes that are due?
- What happens if I do not file a tax return?
- What are prepayment discounts?
- What are vendor's discounts?
- If a customer pays after the tax reporting period, or pays in installments, when is the tax due?
- What if I made a mistake on my return and need to make changes?
Buying, Selling, or Discontinuing a Business
- Why are resale certificates required?
- What can I buy tax free by issuing a resale certificate under my taxpayer number?
- What are my responsibilities as a buyer using a resale certificate?
- Do I need to submit a resale certificate each time I make a purchase?
- What are my responsibilities as a seller accepting a resale certificate?
- Can I find out if a seller's permit number is current?
- Can I issue a resale certificate if I buy items that will be resold in Mexico or another country?
- Are there any penalties for the illegal use of a resale certificate?
Exemption Certificates/Exempt Organizations
- Why are exemption certificates required?
- Does an exemption certificate have to have a number to be valid?
- Who qualifies as a purchaser exempt from sales tax?
- Is there any way I can verify whether an organization is an exempt organization?
- How can I apply to be exempt from sales tax?
- What are exempt uses?
Shipped out of Texas/Exports
Electronic Cigarettes and Cigarettes
- What are E-cigarettes?
- Are E-cigarettes subject to the cigarette tax?
- Are electronic cigarettes (also known as E-cigarettes, personal vaporizers (PVs), or electronic nicotine delivery systems (ENDS)) subject to Texas Sales and Use Tax?
- What if the E-Cigarette contains nicotine? Is it then subject to the cigarette tax?
- Are cigarettes subject to both the sales and use tax and the cigarette tax?