Texas Sales and Use Tax Frequently Asked Questions

Shipped out of Texas/Exports

Do I collect tax on items I ship out of the country (export)?

You do not have to collect Texas tax on items that you export, but you must keep records to prove export.

The Comptroller’s office will accept any of the following documentation as proof:

  • a licensed U.S. customs broker export certification;
  • import documents issued by a foreign country;
  • a bill of lading issued by a licensed and certificated carrier showing the retailer as shipper and a delivery point outside of the United States; or
  • an original airway, ocean or railroad bill of lading with freight forwarder's receipt.
If my customer picks up the item in Texas but then takes it to another country, do I collect tax on that sale?

Yes. Texas sales tax is due when your customer picks up or takes delivery of a taxable item in Texas.

You can refund the tax collected to your customer if they give you acceptable proof of export certifying that the merchandise was taken outside the country. You must keep a copy of the export certification for four years as proof that the refund of sales tax was for an exported item.