For additional information about local sales tax collection, please see Publication 94-105, Local Sales Tax Collection – A Guide for Sellers. If the sales tax rate at your business location is lower than the rate at the purchaser’s location, then you must also collect any additional local use tax due where the item is shipped or delivered. If you sell taxable items online to customers in Texas from your place of business, then you must collect state and local taxes based on your location. Texas sellers are engaged in business if they have a physical Texas location or make online sales in Texas. Texas sellers must collect sales tax on taxable items, including shipping and delivery charges, sold online in Texas.

by mail with Form AP-201, Texas Application (PDF).

in person at a local Comptroller field office or.

If you are in Texas and sell taxable items, you must have a Texas sales tax permit – unless your sales qualify as occasional sales. Purchasers can report any uncollected use tax on Form 01-156 – Texas Use Tax Return (PDF).įor more information on remote sellers, please visit our Remote Sellers webpage. If sales tax is not collected by the remote seller, the purchaser owes use tax on the price of the taxable item. Please use Form 00-957 – Texas Claim for Refund (PDF) to submit a claim. If the single local use tax rate is higher than the local tax rate at the purchaser’s location, a purchaser may apply for a refund for the difference between the single local use tax rate paid to the remote seller and the local tax rate they would have paid at their location. Purchasers who pay use tax to remote sellers using the single local use tax rate owe no additional tax.

the single local use tax rate of 1.75 percent.

Purchasers should know that remote sellers can choose to collect tax based on either 'Taxable items' include all tangible personal property as well as taxable services. The sales price includes all shipping and handling charges.

Many remote sellers must collect, report and remit the appropriate use tax on taxable items delivered to customers in Texas. Purchases made online from remote sellers with no physical presence in Texas are taxable. You can take a credit toward the Texas use tax owed if you paid sales tax to another state. If you purchased an item and brought it into Texas, then you must pay use tax. Remitting use tax protects in-state Texas retailers against unfair competition from out-of-state sellers that may not collect Texas tax. If you have a sales tax permit, the use tax is reported under “taxable purchases” (Item 3) on your sales tax return. If you do not have a sales tax permit, you can file a use tax return (PDF). If a seller does not collect Texas tax, you can report it directly to our office. You can verify the tax rate for a specific address using our Sales Tax Rate Locator. The use tax due is based on the location where you first receive, store or use the item.

Use tax is due on taxable items purchased online and shipped or delivered into Texas, and any shipping and handling charges are part of the sales price. When a Texas purchaser buys a taxable item online from a seller that does not charge Texas sales tax, the purchaser owes use tax.

Out-of-State Purchases Shipped or Delivered Into Texas Online buyers must pay sales and use tax on taxable items delivered or brought into Texas. A common question from Texans who purchase and sell things online is, 'Do I owe Texas tax?' Texas purchasers and sellers may think they can save money by not paying tax when buying or selling on the internet, but those transactions are subject to Texas sales and use tax.

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