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:
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:
Reporting Period |
Due Date |
January–March |
April 20 |
April–June |
July 20 |
July–September |
October 20 |
October–December |
January 20 |
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:
- Visit Harbor Compliance’s Sales and Use
Tax Registration Service page.
- Select Order Online.
- Provide your contact details.
- Submit your order.
For entities who are interested in learning about our Tax Manager module, you can
schedule a demo session by:
- Going to Harbor Compliance’s Tax Manager
page.
- Selecting Schedule a Demo Session.
- Providing your contact and business details.
- 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:
Service Category |
Services |
Beneficial Ownership Information (BOI) reporting |
We submit up to four initial, updated, and corrected BOI reports
in adherence with the CTA. |
Business licensing support |
We assist entities in filing for general
business licenses and industry-specific permits, such as those
required in construction
and architecture.
|
Document filing and retrieval |
We offer drop-off filing services and assist
entities in securing their certified copies
and certificates of good
standing. |
Registered Agent Service |
With local offices across the U.S., we can serve as your registered agent and receive legal
notices on your entity’s behalf. |
Nonprofit formation |
We assist nonprofits in filing for incorporation and 501(c) tax exemption. |
Entity lifecycle management |
Our entity lifecycle management services include filing support for LLC formation, incorporation, amendment, reinstatement, name reservation, withdrawal and dissolution, and
foreign qualification. |
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.
If you intend to offer taxable services or sell tangible physical
property in Texas, you must complete the Texas sales and use tax permit
application process.
To obtain a Texas sales and use tax permit, you must apply with the Texas
Comptroller of Public Accounts. This can be done online if you have a
Social Security number. Applicants who do not have an SSN must apply via
email.
After you apply for the Texas sales tax permit, the Texas Comptroller of
Public Accounts typically takes two to three weeks to process and issue
the sales and use tax permit.
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.