Texas Multistate Taxation Commission Amnesty Program
Summary of the Amazon sellers required to collect and remit in FBA states and the MTC and the program and non FBA states
Once you received your application from the MTC that is signed by the state you have a 30-day window to apply for a sales tax permit in each state.
What is Nexus and Why is it Important in Texas?
If you have nexus or a presence in the state you will have to register to collect and remit sales tax. There is a different standard for sales tax nexus vs income tax nexus. Some states will separate the two, and some states will lump the two together. This comes up when you register for a sales tax permit and you may have to file a corporate tax return and pay state corporate income taxes.
Texas considers the following activities to create nexus:
Here is a list of activities that create nexus in Texas:
Texas considers a seller to have sales tax nexus in the state if you have any of the following in the state:
- Maintaining a place of business in the state”, which includes an office, distribution house, warehouse, etc.
- A warehouse or inventory stored in the state
- Hiring Texas employee, or has agents/sales people/contractors working in Texas
- Stock/Inventory in third-party warehouse
Go here to see full details on what constitutes sales tax nexus in Texas.
Where to Apply for a Sales Tax Permit in Texas
You may file online for a Texas Sales Permit at the Texas Comptroller of Public Accounts.
You may also fill in a Sales Tax PDF application form and mail it to:
Texas Comptroller of Public Accounts
Texas Tax Registration
PO Box 13528, Capitol Station
Austin, Texas 78711-3528
What is a Required to Register for a Sales Tax Permit in Texas
- Personal identification info (SSN, address, etc.) If you do not have a SSN, you must apply with a paper application.
- Business identification info (EIN, address, etc.). Business entity type
- Location Information
- North American Industrial Classification System (NAICS) code
- Date started doing business in Texas
Texas State Fee to Register for a Sales Tax Permit
Applying for a Texas sales permit is free, although other fees may apply.
Texas State Sales Tax Rates
The Texas state tax rate is 6.25%. Local taxes rates vary, but can go as high as 2.0%
If you do in fact have nexus in Texas, it is especially important to file and pay for your sales tax on-time; Texas charges a maximum of 25% of the total taxes due for taxes that are late for more than 30 days.
Registering for a Sales Tax Permit in Texas
Sellers with sales tax nexus in Texas must first apply for a sales tax permit. You must legally have a license to collect sales tax. Collecting sales tax without a license is illegal.
Here are the critical factors that come into applying for a sales tax permit in Texas:
- Knowing the process to file online vs mailing in a PDF (if available, especially for sellers without a SSN).
- Using the correct sales start date
- Knowing the accurate past sales tax amount
- Filing in the correct taxation type of your business
- Applying for the right type of permit in the state
- Setting up a tax account to remit sales tax
- Understanding your remitting requirements
- Plus many more issues may come up
Let Sales Tax System apply for your sales tax permit in Texas so you can focus on operating your Amazon FBA business.
Learn more and register for our Sales Tax System Membership.
Learn more how Sales Tax System Members will save $100 per state with our MTC VDA service. $100 Savings Expires September 15th.
Learn more and register for $95 per State Permit Service (does not include membership to Sales Tax System).