You must obtain a Texas sales and use tax permit if you are an individual, partnership, corporation or other legal entity engaged in business in Texas and you:
See our publication Taxable Services (PDF) for more information.
There is no fee for the permit. However, based on your application, you could be required to post a security bond. For more information on security bonds, contact a Comptroller field office.
The legal definition for "tangible personal property" is "personal property that can be seen, weighed, measured, felt, or touched or that is perceptible to the senses."
A person or a retailer is engaged in business in Texas if any of the following apply:
You can apply for a sales tax permit using our Texas Online Sales Tax Registration Application System, or print an application from the Texas Sales and Use Tax Forms webpage and mail it to the Comptroller.
As a permit holder, you are required to
Yes. If a business applies for a sales tax permit before obtaining a federal employer's identification number, the Comptroller’s office will issue a permit under a temporary number. When we receive the federal employer's identification number, we will then issue a new permit, based on the federal number upon request.
Each seller must have a tax permit for each active place of business. A place of business is an established outlet, office or location that the seller, the seller's agent or employee operates to receive orders for taxable items. If you have multiple places of business, you will receive separate permits for each business location displaying the same taxpayer identification number, but with separate outlet numbers.
A warehouse, storage yard, or manufacturing plant is not a "place of business of the seller" for tax permit requirement purposes unless the seller receives three or more orders in a calendar year at the warehouse, storage yard or manufacturing plant.
No. A permit is valid only for the person to whom it was issued and only for the business at the address shown on the permit. It cannot be transferred from one owner to another. See our FAQs on Buying, Selling, or Discontinuing a Business.
Yes. The new owner must obtain a permit if there are any changes in ownership of your business. A new permit is also needed if you incorporate a business or form a partnership or limited liability company, because this is considered a change of ownership. For example, if you operate a business as a sole proprietor, but decide to incorporate, the corporation will have to obtain a new permit for the business, even though you may operate the business as an officer of the corporation.
Your permit is valid only as long as you are actively engaged in business as a seller. If you are no longer conducting business, you should return your permit to the Comptroller for cancellation. Likewise, the Comptroller’s office may cancel your permit if it finds that you are no longer engaged in business as a seller.
When you apply for a sales and use tax permit, we may be able to inform you of other taxes, licenses or fees for which your business might be responsible, but it’s your responsibility to determine what taxes, licenses, or fees (federal, state or local) your business must report and/or pay.
Yes. Your records may be audited to determine whether you have paid the correct amount of tax. The audit may determine that you owe tax, that you are entitled to a refund or that you have paid the correct amount. In general, you may be audited in four-year intervals; thus, you are required to keep records for a minimum of four years. See Keeping Records.
The Comptroller’s office receives requests each week for a list of businesses that have been issued new sales tax permits. Our office is required by law to provide the requested public information, including the permittee’s telephone number. Please keep in mind: