Texas Sales and Use Tax Permit—Application and Filing Requirements

If you intend to offer taxable products or services in Texas, you are required to have a Texas sales and use tax permit.

To be eligible for this license, you must be at least 18 years of age or have a guardian to apply on your behalf. Additionally, you’ll be expected to provide certain details, such as your Social Security number (SSN), during the application process.

This article will explain how to apply for a sales tax permit in Texas and go over the filing frequencies. We will also discuss how Harbor Compliance’s services can help you obtain the Texas state tax ID.

What Is a Texas Sales and Use Tax Permit?

The Texas sales and use tax permit is a license that authorizes businesses to collect sales tax on tangible property and taxable services in the state. Also known as the Texas sales certificate, this permit ensures that entities adhere to Texas’s regulatory system by reporting and remitting sales tax. The Texas Comptroller of Public Accounts is the regulatory authority that issues this permit to businesses engaged in selling, buying, or renting taxable items of services in the state.

The general Texas sales and use tax rate is 6.25%. However, local jurisdictions, such as counties, cities, transit authorities, and special districts, can impose additional taxes of up to 2%, bringing the total rate to a maximum of 8.25%.

Taxes and fees covered by the Texas sales and use tax certificate include:

• 911 surcharge and fees
• Sales and use tax
• Sales tax surcharge on diesel equipment

How To Apply for a Texas Sales Tax Permit

You must register for sales tax in Texas if you intend to conduct business in the state, sell or lease tangible physical property, or offer taxable services. To qualify for a Texas sales and use tax permit, the applicant must be at least 18 years of age. However, parents are permitted to apply on behalf of a minor.

Depending on the business structure, applicants will need to provide the following documentation during the Texas sales tax application process:

• Sole Owner’s SSN
• Partnership SSN or Federal Employer Identification Number (FEIN) for each partner
• SSN of each officer or director of a corporation
• Texas corporation’s file number from the Texas secretary of state
• North American Industrial Classification System (NAICS) code for all business

If you have an SSN, you can complete the application process for the Texas sales and use tax permit online through the Texas Comptroller’s website. Applicants who do not have an SSN must download the AP-201 Texas Application, complete it, and email it directly to the Texas Comptroller of Public Accounts for processing.

Although you are not required to renew the Texas sales and use tax permit, you must report any changes that occur in your business, such as updating your address, to the state.

Filing Requirements for the Texas Sales and Use Tax

After completing the Texas sales and use tax permit application, you can generally expect a processing time of two to three weeks. Once approved, you’ll receive your Texas sales and use tax permit number and instructions on the filing frequency required by the state.

Most businesses are assigned a monthly or quarterly filing schedule. For those filing quarterly, the due dates for each period are outlined in the table below:

Entities required to file monthly must do so by the 20th day of the month following the reporting period. If the due date falls on a weekend or public holiday, the filing deadline is extended to the next business day. Penalties for late filings or payments include the following:

• $50 on each report that is filed after the due date
• 5% fine for taxes that are paid one to 30 days after the due date
• 10% fine for taxes that are paid over 30 days after the due date

Applying for a Texas Sales and Use Tax Permit? Simplify the Process by Partnering With Harbor Compliance

Although you can apply for a Texas sales tax permit independently, there are clear advantages of partnering with an experienced service provider. By choosing experts to manage the process, you gain peace of mind knowing that professionals are handling your permit application accurately. This will minimize errors that can cause delays and ensure a smooth experience.

Working with a comprehensive tax service provider is also beneficial because obtaining the TX sales tax permit is just one of several regulatory obligations.

Harbor Compliance is a trusted service provider that supports businesses with various regulatory needs. Our tax registration services include helping entities obtain their Employer Identification Number (EIN) and apply for a sales and use tax permit in the U.S.

In addition, we offer a Payroll Tax Registration Service for businesses planning to hire employees. We assist in setting up payroll tax accounts to remit taxes to the federal, state, and local governments.

Keeping Track of Your Tax Filing and Registrations With Harbor Compliance’s Tax Manager

Harbor Compliance’s tax solutions go beyond payroll tax registration and applying for sales and use tax permits. Our proprietary Software Suite includes the Tax Manager module, a tool designed to help businesses stay on top of their tax obligations. With Tax Manager, businesses can efficiently:

• Track federal, state, and local tax registrations and exemptions
• Centrally store tax filings for easy access
• Access key information and tax identification numbers at a moment’s notice

This comprehensive solution keeps your essential tax details organized and readily accessible, ensuring streamlined tax management.

How To Order Harbor Compliance’s Tax Registration Solutions

Harbor Compliance offers three primary tax registration support services: EIN registration, payroll tax filing support, and sales and use tax registration. To order our assistance for your Texas sales tax permit, follow these steps:

1. Visit Harbor Compliance’s Sales and Use Tax Registration Service page.
2. Select Order Online.
3. Provide your contact details.
4. Submit your order.

For entities who are interested in learning about our Tax Manager module, you can schedule a demo session by:

1. Going to Harbor Compliance’s Tax Manager page.
2. Selecting Schedule a Demo Session.
3. Providing your contact and business details.
4. Checking out your demo request.

Our team will contact you to explain how the module can help your entity manage its tax obligations.

Harbor Compliance’s Other Services

Harbor Compliance’s services extend beyond tax registration. We also provide filing support to assist entities in fulfilling diverse regulatory obligations, from business licensing to entity management. The table below outlines the services we offer:

Texas Sales and Use Tax Permit FAQs

This section will answer some frequently asked questions about the Texas sales and use tax registration process. To learn more, visit Harbor Compliance’s Information Center.

Partnering With Harbor Compliance To Complete the Texas Tax Registration Process

Entities cannot legally sell taxable products or provide taxable services in Texas without a Texas state sales tax permit. Although this permit does not need to be renewed, staying on top of filings and submitting tax reports before the deadlines is essential to avoid penalties. Additionally, businesses may need to secure an EIN and open payroll tax accounts to meet other tax requirements in the state.

Harbor Compliance offers comprehensive assistance to handle these responsibilities, from opening payroll tax accounts to applying for the sales and use tax permit. Our Tax Manager software also provides a centralized platform to store tax filings and track tax registration and exemption.

If you’d like to partner with us, get started by scheduling a demo session to explore our Tax Manager module. Then, you can order our tax registration solutions, such as the Sales and Use Tax and Payroll Tax Registration Services.

Meanwhile, use our free Harbor Compliance Score ™ to check your standing with regulatory requirements and contact us to discuss and determine the solutions you need.

Sales & Use Tax Licensure

This section applies to businesses that are applying for a license in Texas for the first time.