Did you sell anything online in 2021?
What you need to know about Texas sales tax.
Rule 3.334, Local Sales and Use Taxes, effective May 31, 2020, implemented several provisions related to local tax collection by remote sellers and marketplace providers.
According to the Sales Tax Institute, “April 1, 2020, if a remote seller’s combined sales (sales made directly through their own website plus sales made through a marketplace facilitator) exceed the $500,000 economic nexus threshold, then the seller is required to apply for a Texas sales tax permit and collect and remit tax on its sales into Texas that are not made through a marketplace provider.”
Effective October 1, 2021, the Texas Comptroller of Public Accounts, states,
- Orders received by salespersons while working away from their office will be sourced to the location from where the salesperson works if the location meets the definition of a place of business.
- Orders received by a shopping website or shopping application will be sourced to the Texas customer’s location unless fulfilled by the seller’s Texas place of business.
Plus, Texas imposed a 6.25 percent state sales-and-use tax on all retail sales, leases, and rentals of most goods, as well as taxable services. Local taxing jurisdictions (cities, counties, special purpose districts, and transit authorities) can also impose up to 2 percent sales and use tax for a maximum combined rate of 8.25 percent.
If you have questions about sales tax use for your Texas-based company, give us a call.