Sales Tax Information


Sales Tax Information

Tax Exemption Certificates (1-339)

Texas State Sales Tax: 8.25%

Application for Non-Profit Tax Exemption

Resale Tax Certificate

In Texas, the sale of a taxable item that is intended for resale is exempt from sales tax. For example, if you operate a shop, you can purchase inventory for the shop tax-free from a wholesaler because you intend to sell the goods to customers and collect the tax on the sales. 
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. 
Basically, the resale certificate is a guarantee to the seller that you intend on reselling the items and that the sales tax doesn’t need to be collected at the time of purchase. 
Documents Required

  1. The original, filled-out certificate (1-339 Page 1) should be furnished to the seller at the time of the purchase; you do not have to send a copy of the form to the Comptroller’s office. 
  2. Texas Sales and Use Tax Permit

    (See Sample Documents)

Non-Profit Tax Exemption Certificate

In Texas, any educational organization can apply for tax-exempt status, and if granted, it will not have to pay sales tax on products purchased for educational purposes.
Documents Required

  1. The original, filled-out certificate (1-339 Page 2) should be furnished to the seller at the time of the purchase; you do not have to send a copy of the form to the Comptroller’s office. 
  2. Tax Exemption letter from Comptroller of Public Accounts, State of Texas. Exempt Organization Section.

    (See Sample Documents)

Taxable Education Categories

E-Courses (Online Course)
In Texas, if you sell licenses to access your e-course, you should collect sales tax on the transaction.  
And if you offer a reference library to the students, sales tax should be collected as the Texas Comptroller considers that the sale of information services.