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Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts


Engaged in Business (Sales and Use Tax)

Texas sellers and out-of-state sellers engaged in business in Texas must apply (PDF) for a Texas sales and use tax permit and collect sales and use tax (PDF) on the taxable items or services they sell, deliver or provide here.

Are You Engaged in Business in Texas?

You are engaged in business in Texas if any of the following statements apply to your business or service.

In Texas, you:

  • have a temporary or permanent location (that may or may not be a place of business) that you operate directly or through an agent
    • Examples include a kiosk, office, distribution center, sales room, sample room, warehouse, storage place or any other physical location where you sell taxable items or services.
  • have an employee or representative to sell, deliver or take orders for taxable items or services
    • Examples include independent salespersons operating on behalf of direct sales companies; employees who exhibit products at trade shows or conferences; affiliates or related businesses that accept returns in Texas.
  • perform services using company employees, authorized service agents or subcontractors
  • promote a flea market, arts and crafts show, trade day, festival or other event selling taxable items or taxable services
  • lease equipment or other tangible personal property to others
  • own or use tangible personal property to solicit orders
    • Examples include a computer server or software, unless you use the server or software for Internet hosting services.
  • deliver items into Texas using owned, leased or company vehicles
  • allow a franchisee or licensee to operate under your trade name and the franchisee or licensee is required to collect sales and use tax in Texas
  • form, organize or incorporate your business here (even if you have no activity)
  • have at least a 50 percent ownership interest in, or are owned by at least 50 percent by, another person who maintains:
    • a distribution center, warehouse or similar location and delivers your taxable items sold;
    • a place of business that sells similar products as you and sells those products under a similar business name as yours; or
    • a place of business that uses its facilities or employees to promote your sales or intends to establish or maintain a marketplace for you, including receiving or exchanging returned merchandise.

Not Engaged in Business in Texas

You are not engaged in business in Texas if you are an out-of-state seller that:

  • does not have a physical presence in Texas;
  • conducts business in Texas only by telephone, internet or catalog sales; and
  • delivers items in Texas only through common carriers or the U.S. Postal Service.

Exception: If you are an out-of-state seller who comes to Texas during a disaster response period only to repair or restore critical infrastructure damaged in a disaster or other emergency, you are not engaged in business here. Examples of critical infrastructure disaster- or emergency-related work include repairing equipment or property used by a telecommunications provider (such as buildings, lines and poles) or repairing water pipelines. Certain restrictions apply. See Rule 3.286 for more information.


HB855 Browser Statement

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 Google Chrome, Microsoft Internet Explorer and Apple Safari.

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