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Can I collect sales tax from customers in different states without violating tax laws in Texas? What are the requirements?
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Can I collect sales tax from customers in different states without violating tax laws in Texas? What are the requirements?
If you are a remote seller and you make sales of taxable items in Texas, you may be required to collect and remit sales tax to the state of Texas. According to [1.3]" >Tex. Tax Section 151.0595, a remote seller required to collect and remit one or more local use taxes in connection with a sale of a taxable item made by the remote seller shall compute the amount to collect and remit using the combined rate of all applicable local use taxes authorized or governed by Title 3 or the single local use tax rate published in the Texas Register as required by Subsection (d).
If you elect to use the single local use tax rate, you must notify the comptroller of the election before using that rate. The election applies to all sales of taxable items made by the remote seller unless the remote seller revokes the election by notifying the comptroller. Notice to the comptroller under this subsection must be in the form and manner provided by the comptroller. [1.3]" >Tex. Tax Section 151.0595(c)
However, if you are not a remote seller and you make sales of taxable items in Texas, you are required to collect sales tax from your customers. According to [1.4]" >Tex. Tax Section 151.052(a), a seller who makes a sale subject to the sales tax imposed by this chapter shall add the amount of the tax to the sales price, and when the amount of the tax is added, it becomes a part of the sales price, it is a debt of the purchaser to the seller until paid, and if unpaid, it is recoverable at law in the same manner as the original sales price.
If you are a remote seller and you make sales of taxable items in Texas, you may be required to collect and remit sales tax to the state of Texas using the combined rate of all applicable local use taxes authorized or governed by Title 3 or the single local use tax rate published in the Texas Register as required by Subsection (d). You must notify the comptroller of the election before using that rate. The election applies to all sales of taxable items made by the remote seller unless the remote seller revokes the election by notifying the comptroller. Notice to the comptroller under this subsection must be in the form and manner provided by the comptroller.
In summary, if you are a remote seller making sales of taxable items in Texas, you may be required to collect and remit sales tax to the state of Texas. If you are not a remote seller and you make sales of taxable items in Texas, you are required to collect sales tax from your customers. The requirements for remote sellers are outlined in [1.3]" >Tex. Tax Section 151.0595, and the requirements for non-remote sellers are outlined in [1.4]" >Tex. Tax Section 151.052(a).
Source(s):
Jurisdiction
Texas