In Texas, the sale of a taxable item that is intended for resale is exempt from sales tax. In order to purchase resale goods tax-free, you need to provide the seller with a resale certificate. If you do not provide a certificate, the seller is required to charge you sales tax on the goods.

How do I get a resale permit in Texas?

You can apply for a Texas seller’s permit online through the Texas Online Tax Registration Application or by filling out the Texas Application for Sales and Use Tax Permit (Form AP-201) and mailing it to the comptroller’s office at the address listed on the form.

Are items purchased for resale taxable?

Generally, resellers to do pay sales tax when they purchase the items,but must collect sales tax when those items are sold to the end user. While the products sold by resale businesses may be very different, they all buy products and then resell them in the same form in which they were acquired.

Is a sales tax permit the same as a resale certificate in Texas?

In Texas, unlike in other states, resale certificates and sales tax permits are not interchangeable. You can also generally use a Texas resale certificate if you intend to buy items and then resell them across the border in Mexico.

Do you have to accept a resale certificate in Texas?

Texas Sales and Use Tax Resale Certificate don’t expire. Are sellers required to accept resale certificates? Sellers are not required to accept resale certificates, however most do. If the vendor doesn’t accept the certificate, the buyer will have to pay sales tax on the merchandise being purchased.

How to get a Texas sales and use tax permit?

After registering, an 11-digit Texas Sales and Use Tax Permit Number will be provided by the Comptroller’s office. This number will be listed on the Sales and Use Tax Resale Certificate. Filling out Form 01-339 is pretty straightforward, but is critical for the seller to gather all the information.

What are items exempt from sales tax in Texas?

An example of items that are exempt from Texas sales tax are items specifically purchased for resale. This means that an individual in the state of Texas purchases school supplies and books for their children would be required to pay sales tax, but an individual who purchases school supplies to resell them would not be required to charge sales tax.

What transactions are generally subject to the sales tax in Texas?

What transactions are generally subject to sales tax in Texas? In the state of Texas, sales tax is legally required to be collected from all tangible, physical products being sold to a consumer. An example of items that are exempt from Texas sales tax are items specifically purchased for resale.