Businesses that operate in Texas and are required to pay state sales and use tax must obtain a Texas Taxpayer Number by registering for state sales and use tax permits. The Taxpayer Number can also be used when registering for other state taxes and business permits.
Businesses Required to Register
A business is required to obtain a Texas sales and use tax permit if it sells or leases tangible personal property in the state, or if it sells taxable services in the state. The Texas Comptroller of Public Accounts provides an extensive list of taxable services online. The requirement for the permit extends to individual business owners, firms, corporations, partners and other legal entities. There is no fee for the permit.
The Comptroller of Public Accounts offers the Texas Online Tax Registration Application form at the comptroller website. The online registration form allows a business to register for the Sales and Use Tax, 911 Surcharge and Fees, Sales Tax Surcharge on Diesel Equipment, and the Fireworks Tax. If a company does not already have the 11-digit Taxpayer Number, it will receive a new TIN when the Comptroller office processes the application.
Mail and In-Person Applications
To mail in an application, businesses can download the printable form AP-201, Texas Application for Sales and Use Tax Permit, from the Comptroller website. Businesses can also call 800-252-5555 to receive the application form, or apply in person at any of the Texas Taxpayer Services and Collections Field Offices.
Federal Tax ID Required
As part of the application process, businesses need to enter a federal Employer Identification Number from the Internal Revenue Service, or for sole proprietors, a Social Security Number. Businesses that have yet to receive an EIN, however, can still apply for a sales and use tax permit. In these cases, the Comptroller’s office will issue a permit with a temporary number, and will issue a permanent number when the business obtains an EIN.
One Tax Number for Each Place of Business
A sales and use tax permit must be issued for each “active place of business,” be it a store outlet, office or other location where the seller or seller’s agent operates to sell taxable items. A warehouse or factory would not be considered a “place of business of the seller” under Texas regulations. If a business location no longer engages in selling goods or services, the tax permit must be returned to the Comptroller for cancellation.