Have Questions? Call:
Have Questions? Call:
Sales Tax and Your New Business
October 13, 2016
The Texas Comptroller of Public Accounts wants to make doing business in Texas as easy and friendly as possible. Apply for a sales tax permit using this link: Texas Online Sales Tax Registration System. An application can also be downloaded from the Tax Forms Online page. You can also obtain an application by calling (800) 252-5555 or by visiting one of the enforcement field offices.
If you are purchasing an existing business, please read the following tax publication: Buying An Existing Business (98-117)
Note: Applications and forms are pdf files. If you do not have Adobe Acrobat Reader, you will need to download the latest version to view and print these items.
According to the Texas Comptroller of Public Accounts, You must obtain a sales tax permit if:
Both wholesalers and retailers must apply for a sales tax permit. Internet and catalog sellers engaged in business in Texas must be permitted and are responsible for collecting and remitting the applicable state and local taxes on sales delivered to customers in Texas.
If you have any questions about selling in Texas or the sales tax permit registration process, please follow this link to view the Texas Comptroller’s: Frequently Asked Questions.
To apply for a sales tax permit online, go to Texas Online Tax Registration Application.
You may register for a permit in person at one of the Texas Comptroller’s field offices.
You can download and print AP-201, Texas Applications for Sales Tax Permit, Use Tax Permit, and/or Telecommunications Infrastructure Fund Assessment from this webpage: http://www.window.state.tx.us/taxinfo/taxforms/01-forms.html. The completed application can be delivered in person to any of the local offices or mailed to the main office at
Comptroller of Public Accounts
111 E. 17th Street
Austin, Texas 78774-0100
You can request to have an application for a sales and use tax permit mailed to you by calling (800) 252-5555.
Representatives are available to assist you with permit questions Monday through Friday (except State holidays) from 7:30 A.M. to 5:30 P.M. A registration packet will be mailed to you within 24 hours. You will generally receive your permit approximately two weeks after the Comptroller’s office has received your completed application. Incomplete applications may delay the process.
The Texas Comptroller’s office offers taxpayer seminars throughout the state four times each year. New taxpayers are especially encouraged to attend these overviews of tax responsibilities for buyers, sellers, and service providers.
A new schedule of seminars is set every month.
The Texas Business Advisor helps identifies the steps to opening a business.
When you sell taxable items (tangible personal property or taxable services), you must collect state sales or use tax plus the appropriate local sales or use taxes. The information contained in the State Comptroller’s bulletin Guidelines for Collecting Local Sales and Use Tax will help you collect the correct local taxes.
More than half the Texas population lives in, or conducts business with retailers located in, one of the state’s transit authorities. If you will need to collect the transit sales and use tax in one or more transit authority area, visit this webpage, Transit Sales and Use Tax, which lists each MTA and the tax rate.
Local sales tax rate information is updated on the first day of each quarter (January, April, July and October) with the most current information about Texas Sales and Use Tax Rates.
Taxpayers who incur franchise taxes can now use the State’s electronic filing service. The main advantage of this method of electronic submission is receiving immediate feedback about a return’s accuracy. For more information, follow this link: Franchise Tax Web Service
Depending on the anticipated sales volume for your business, you will file sales tax reports quarterly, monthly or yearly. At your requested, preprinted report forms will be sent to you by the Comptrollers’ office well in advance of the due date
For your convenience, there are a variety of resources available from the Comptroller’s office that can be used if you ever need forms:
Electronic reporting services are available 24 hours a day, 7 days a week. You can save time, money and paper by using these fast and easy services.
The Comptroller’s office offers the opportunity to satisfy certain filing requirements by touch-tone phone. If you have a sales tax permit and have no taxable sales to report for the filing period, you can avoid filing a paper return by simply calling us at 1-888-4FILING (1-888-434-5464)
Texas does not issue special “Reseller’s licenses or permits.” If you will be making sales for resale, you must obtain a Texas sales and use tax permit. Other information and forms that you will need include:
As a new business owner, tax rules you will find helpful include 3.286, Seller’s and Purchaser’s Responsibilities, and complete list of state sales tax rules to find those that apply to your particular business.
Review our list of tax publications and bulletins for information about sales tax requirements and exemptions pertaining to various industries.
There are various other types of tax ID numbers that a business may need depending on how the business is formed and what type of business you will be operating.
You may also want to check with your local government entities, city or county appraisal districts, or local chamber of commerce to find out if there are any taxes or fees for which you may be responsible that are administered by a local government authority.
