How do I get a tax resale certificate in Texas?

You can apply for a Texas seller’s permit online through the Texas Online Tax Registration Application or by filling out the Texas Application for Sales and Use Tax Permit (Form AP-201) and mailing it to the comptroller’s office at the address listed on the form.

Does Texas have a resale certificate?

What’s a resale certificate? In Texas, the sale of a taxable item that is intended for resale is exempt from sales tax. In order to purchase resale goods tax-free, you need to provide the seller with a resale certificate. If you do not provide a certificate, the seller is required to charge you sales tax on the goods.

What is a federal resale tax certificate?

A resale certificate indicates the item was in good faith that the purchaser would resell the item and report tax on the final sale. As a seller, you may also accept resale certificates from others who wish to purchase items for resale.

How much does a resale certificate cost in Texas?

It’s free to apply for a Texas sales tax permit. A bond may be required but only after the application is filed and reviewed. Other business registration fees may apply. Contact each state’s individual department of revenue for more about registering your business.

How long is a resale certificate good for in Texas?

four years
The resale certificate is the seller’s evidence as to why sales tax was not collected on that transaction and should be retained in the seller’s books and records for four years.

Is an EIN number the same as a resale certificate?

Resale Certificate. Even though it’s important for your taxes, your resale number isn’t the same as a tax ID number. Your business’s TIN goes on federal tax returns, and if you need to pay state taxes on your business income, you can apply for a state TIN. The resale number involves state sales tax.

What transactions are subject to the sales tax in Texas?

Sales of janitorial services are subject to sales tax in Texas. Sales of transportation services are exempt from the sales tax in Texas.

Is a resale certificate the same as a tax ID?

A seller’s permit/resale license is the same as a state tax ID, as both are issued by the state for sales tax purposes. An EIN or federal tax ID number, however, is issued by the federal government, not the state. The EIN is used to hire employees and manage employee taxes,…

How to properly verify resale certificate?

Check the Information. There is no set form for a resale certificate.

What is Texas sales tax exemption certificate?

Texas Sales and Use Tax Exemption Certificate. A sales tax exemption certificate can be used by businesses (or in some cases, individuals) who are making purchases that are exempt from the Texas sales tax.