A permitted purchaser – the purchaser of a taxable item or service – who held a sales tax permit at the time they paid sales tax in error can:
A permitted purchaser who did not hold a sales tax permit at the time the tax was paid in error can ask the seller for a refund of tax paid in error. The seller can either grant the refund or give the purchaser an assignment of right to refund (PDF), which allows the purchaser to file the refund claim directly with the Comptroller's office.
While waiting for a response about the approval or denial of your credit, do not stop filing sales tax reports and paying the tax due. If you fail to report and pay sales tax liabilities on time, you will be assessed penalties and interest on the unreported or unpaid amounts.
Even if you normally file the short form, to take a credit on a return, you must:
Example: You owe $100,000 in sales tax on your next return, but you are due a $20,000 refund because you overpaid tax on a previous return. You can report the $20,000 credit on the Credit and Customer Broker Schedule, and report tax due of $80,000 on the long form return. Be sure to keep good records to show why and how the reduction was made.
A permitted purchaser cannot claim a credit for a local taxing jurisdiction unless it has been previously reported on prior tax returns. Instead, a refund claim must be filed with the Comptroller's office.
You can also amend an original return you filed. Follow the instructions on the form used to file the original return (as described in the Taking a Credit on a Future Return section above), and write "Amended Return" on the top of the form. You can also electronically file an amended return, even if it reduces the tax due of the original return filed. Additional documentation may be requested to validate your request.
It is not necessary to file amended returns for separate periods in separate envelopes. For efficient processing, the Comptroller's office will review all the amended returns filed at the same time.
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.