Any business that sells goods or taxable services within the state of Texas to customers located in Texas is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in Texas must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
You may need a Sales Tax Certificate if any of the following apply your business:
As a wholesale company conducting business in the state of Texas, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
While you may not collect sales taxes from your out of state customers, you are still required to collect their information and report it to Texas State.
If you sell tangible goods in Texas that are taxable than you would charge sales tax on shipping and handling charges.
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third party shipper. In most instances, drop shipments in Texas are required to have sales tax added
Leases on motor vehicles, safety apparel, certain medical goods and equipment, groceries, raw materials and machinery, newspapers, and general pollution control equipment are tax exempt
Register for a Texas sales/use tax number
Texas state, county, city, & municipal tax rate table