The state of Texas has exemptions from sales tax on certain kinds of purchases or purchasers. For example, a business buying at wholesale for resale purposes may obtain a Texas sales tax exemption on those purchases. Nonprofits can also obtain certain Texas tax exemptions. Those seeking to get a sales tax exemption in Texas must first register for a Texas tax ID number for sales tax. They can then use Texas tax exempt forms to get sale tax exemptions on purchases made in Texas.
A business should first register with the Texas Secretary of State for certain business entities. For example, a business or individual seeking to form a Texas corporation would first register with the Secretary of State. Other business entities that need to file include limited liability companies and certain partnerships. These entities must register the business with the Secretary of State first because such organizations must file under the entity to get a Texas tax exemption for sales tax.
Get an EIN number (federal tax identification number) if your business requires it. Nonprofits always need an EIN. Other businesses typically need an EIN number if they are hiring employees. You can find out about EIN registration requirements at IRS.gov. There is a search box at the top of every page.
Download the Texas Comptroller of Public Accounts “Texas Application” for state sales tax. Texas businesses need to use this form when collecting Texas sales taxes. They then receive a Texas sales tax ID number that is used when remitting sales taxes to the state. Note that you generally need to do this first to get a Texas tax exemption from sales taxes.
Fill out the form with your business information. Even if you did not have to register with the Secretary of State (like a sole proprietorship), you still need to fill out this Texas sales-tax registration form if selling to customers in Texas. You should also read the detailed instructions for this Texas sales tax permit application before completing the form.
Send the completed form to the following address:
Comptroller of Public Accounts
111 E. 17th St.
Austin, TX 78774-0100
You will generally get a Texas sales tax permit and ID number in about four weeks. For some Texas tax exemptions for sales tax, you will need this Texas sales tax permit number.
Download the Texas tax exemption certificates at Window.state.tx.us/taxinfo/taxforms/01-339.pdf. There are two Texas tax exempt forms for sales tax:
a. Texas Sales and Use Tax Resale Certificate; and
b. Texas Sales and Use Tax Exemption Certification.
Provide a copy of this form to the seller when you want a Texas tax exemption for sales tax on purchases that you or your business make in Texas. Use the Texas resale certificate when buying goods that you will resell. Use the exemption certification when you otherwise qualify for an exemption on Texas sales taxes.
Tip: Always inform a Texas business attorney about your business buying activities to see if you qualify for a Texas tax exemption on those purchases. For example, a Texas nonprofit corporation has tax exemptions for some but not all purchases.
Texas Resale Certificates
Texas Sales Tax Permit Application