Texas

Texas

Standard rate:

6,25%

Who is obliged to register sales tax:

Complete application for registration 

  • you have a business in Texas; 
  • you sell or rent movable property in Texas;
  • you provide taxable services in the state of Texas.

Threshold:

– $500,000 

Merchant thresholds by state

Marketplace thresholds by state

The special rules are applicable for the SAAS business.

Software as Service Tax Thresholds by state

Marketplace:

Marketplace facilitators engaged in business in Texas must collect, report, and remit sales and use tax on all sales made through a marketplace. Marketplace providers are required to note to marketplace dealers that they will collect sales and use tax on their behalf.

Registration procedure:

Remote sellers can Apply for a Permit via eSystems on the website Texas Tax Department.

To fill out the application, remote sellers will need the following documentation:

  • Nine-digit Social Security number (SSN) of the company owner
  • Partnership Social Security numbers/federal employer’s identification numbers for every partner.
  • Texas corporation’s file number Issued by the Texas Secretary of State.
  • Social Security number for each general manager or director of a company.
  • NAICS – North American Industrial Classification System code required for all businesses.

If you do not have any of these documents, then you must register using the pdf form.

Sales tax payment and filing date:

You can check the tax payment deadline on the website.

Penalty and interest:

  • Each tax return filed after the due date is subject to a $ 50 fine.
  • If the tax is paid no later than 30 days after the due date, a penalty of 5 percent will be charged.
  • A 10 percent penalty will be charged if the tax is paid more than 30 days after the due date.

Discount:

  • Registered sales taxpayers can claim a discount of 0.5% of the amount of tax timely reported and paid.
  • Sales taxpayers who prepay can claim 0.5% for timely filing and paying, plus 1.25 percent for prepaying.