TEXAS SALES TAX 101: Collect Taxes on Items Sold in Texas

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Sales tax 2If you are selling a taxable product to a non-exempt customer, you must collect sales tax on items sold in Texas. This means that, normally, a Texas retailer does not have to collect Texas sales tax on items shipped to buyers located in other states or to a foreign country.

Be sure that your accounting program is set up correctly in order to track sales made to other states. You should keep delivery receipts in order to prove that the product was delivered to a customer in another state, in case you are audited.

If a customer from another state or country comes to your store, located in Texas, and buys the product, you must charge and collect sales tax.

You may be liable for collecting the destination state’s taxes. Be sure to review the facts of your business with your tax advisor.  

Like any good CPA, I need to add a disclaimer: Unfortunately, it is impossible to offer comprehensive tax info over the internet, no matter how well researched or written. And remember, I love my readers but having me bookmarked on your computer doesn’t make you a client: before relying on any information given on this site, contact a tax professional to discuss your particular situation.