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by TaxJar October 19, 2024
If you buy products to resale in the state of Texas, you can avoid paying sales tax on your purchase by using a Texas resale certificate. Always keep in mind that you should only use your resale certificate to buy items you intend to resale. Any other use of the resale certificate by an individual is usually considered unlawful.
Using a resale certificate in Texas is fairly straightforward, you can print one online.
In Texas, unlike in other states, resale certificates and sales tax permits are not interchangeable. (Though, if you live and have sales tax nexus in Texas and are buying something for resale in Texas then you should have a Texas sales tax permit .) Texas retailers who accept resale certificates can also accept out-of-state resale certificates. You can also generally use a Texas resale certificate if you intend to buy items and then resell them across the border in Mexico.
Keep in mind that if you are registered for a Texas sales tax permit , you are required to collect sales tax from your Texas buyers .
If you are a retailer with nexus in Texas and your buyer presents you with a resale certificate, you should do the following:
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