When do I charge sales tax in Texas?
You need to charge sales tax in Texas if you have a sales tax nexus in the state.
A sales tax nexus means different things in different states. It can mean having a physical location (e.g. a brick and mortar store), or someone in the state working for you. For ecommerce it can also mean having an ‘affiliate’ or click through sales tax nexus.
To know for certain if you should be charging sales tax in Texas, check the Texas government sales tax website.
Which goods are exempt from sales tax in Texas?
Some goods are exempt from sales tax in Texas for example groceries and most medical supplies. You'll also find Texas sales tax exemptions which can be applied because the seller or purchaser meets certain criteria.
For a full list of exemptions, check the Texas government tax website.
Calculating sales tax...
It is often said that states with no income tax (i.e. Texas) "get you" with high sales and property tax. But how can that be if the sum of all of these taxes is still less than the % you'd pay in income tax?
Confused on Sales Tax
Sales and use tax texas
It depends if you are looking at this from the merchant's perspective or the consumer's perspective.
As a merchant when completing your sales and use tax return, the use tax would typically be tax charged for non physical things, such as hotel room accommodation, etc.
It also applies, as the other poster indicated, to purchases from out of state, or purchases made for retail that were actually used within the business instead.
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