| (A) If an independent salesperson purchases a taxable
item from a direct sales organization after taking the purchaser's
order, then the direct sales organization must collect from the independent
salesperson, and remit to the comptroller, the sales and use tax on
the actual sales price for which the independent salesperson sold
the taxable item to the purchaser.
(B) If an independent salesperson purchases a taxable
item from a direct sales organization before the purchaser's order
is taken, then the direct sales organization must collect from the
independent salesperson, and remit to the comptroller, the sales and
use tax based on the organization's suggested retail sales price of
the taxable item.
(C) Taxable items that are sold to an independent salesperson
for the salesperson's use are taxed based on the actual sales price
for which the item was sold to the salesperson at the tax rate in
effect for the salesperson's location.
(D) Incentives, including rewards, gifts, and prizes.
(i) Direct sales organizations owe sales and use tax
on the cost of all taxable items used as incentives that are transferred
to a recipient in this state, including purchasers, independent salespersons,
and persons who host a direct sales event.
(ii) Direct sales organizations must collect sales
or use tax on the total amount of consideration received in exchange
for taxable items, including items purchased with hostess points or
similar forms of compensation paid to a person for hosting a direct
sales event and items that are earned by the host based on the volume
of purchases. The redemption of reward points in exchange for taxable
items is subject to sales tax under Tax Code, §151.005(2). See
also §3.283 of this title (relating to Bartering Clubs and Exchanges).
(4) Printers. A printer is a seller of printed materials
and is required to collect sales and use tax on sales of those materials
in this state. A printer who is engaged in business in this state,
however, is not required to collect the sales and use tax if:
(A) the printed materials are produced by a web offset
or rotogravure printing process;
(B) the printer delivers those materials to a fulfillment
house or to the United States Postal Service for distribution to third
parties who are located both inside and outside of this state; and
(C) the purchaser issues a properly completed exemption
certificate that contains the statement that the printed materials
are for multistate use and the purchaser agrees to pay to this state
all the sales and use taxes that are or may become due to the state
on the taxable items that are purchased under the exemption certificate.
See subsection (g)(4) of this section for additional reporting requirements.
(5) Fundraisers by exempt entities. Regardless of the
contractual terms between a for-profit entity and a non-profit exempt
entity relating to the sale of taxable items, other than amusement
services, as part of any fundraiser, the for-profit entity will be
considered the seller of the items under Tax Code, §151.024,
must be a permit holder, and is responsible for the proper collection
and remittance of any sales or use tax due. The exempt entity and
its representatives will be considered as representatives of the for-profit
entity. The for-profit entity may advertise in a sales catalog or
state on each invoice that sales and use tax is included, as provided
under paragraph (2) of this subsection, or may require that the sales
and use tax be calculated and collected by its representatives based
on the sales price of each taxable item. Fundraisers conducted by
exempt entities in this manner do not qualify as a tax-free sale day.
For more information on exempt entities and tax-free sales days, see §3.322
of this title (relating to Exempt Organizations). For more information
on amusement services, see §3.298 of this title (relating to
Amusement Services).
(6) Local sales and use tax. A seller who has nexus
with this state and is engaged in business in this state is required
to properly collect and remit local sales and use tax even if no sales
and use tax permit is required at the location where taxable items
are sold. For more information on the proper collection of local taxes,
see §3.334 of this title.
(e) Sales and use tax returns and remitting tax due.
(1) Forms prescribed by the comptroller. Sales and
use tax returns must be filed on forms that the comptroller prescribes.
The fact that a person does not receive or obtain the correct forms
from the comptroller does not relieve a person of the responsibility
to file a sales and use tax return and to remit the required sales
and use tax.
(2) Signatures. Sales and use tax returns must be signed
by the person who is required to file the sales and use tax return
or by the person's duly authorized agent, but need not be verified
by oath.
(3) Permit holders.
(A) Each permit holder is required to file a sales
and use tax return for each reporting period, even if the permit holder
has no sales or use tax to report for the reporting period.
(B) Each permit holder must remit sales and use tax
on all receipts from sales or purchases of nonexempt taxable items,
less any applicable discounts as provided by subsection (h) of this
section.
(C) Each permit holder shall file a single sales and
use tax return together with the tax payment for all businesses that
operate under the same taxpayer number. The sales and use tax return
for each reporting period must reflect the total sales, taxable sales,
and taxable purchases for each outlet.
(D) Consolidated reporting by affiliated entities is
not allowed. Each legal entity engaged in business in this state is
responsible for filing a separate sales and use tax return.
(4) Electronic returns and remittances. Certain persons
must file returns and transfer payments electronically as provided
by Tax Code, §111.0625 and §111.0626. For more information,
see §3.9 of this title (relating to Electronic Filing of Returns
and Reports; Electronic Transfer of Certain Payments by Certain Taxpayers).
(f) Due dates.
(1) General rule. Sales and use tax returns and remittances
are due no later than the 20th day of the month following each reporting
period end date unless otherwise provided by this section. Sales and
use tax returns and remittances that are due on Saturdays, Sundays,
or legal holidays may be submitted on the next business day.
(A) Sales and use tax returns submitted by mail must
be postmarked on or before the due date to be considered timely.
(B) Sales and use tax returns filed electronically
must be completed and submitted by 11:59 p.m., central time, on the
due date to be considered timely.
(2) Due dates for payments made using an electronic
funds transfer method approved by the comptroller are provided at §3.9(c)
of this title.
(3) Extensions for persons located in an area designated
in a state of disaster or state of emergency declaration. The comptroller
may grant an extension of not more than 90 days to make or file a
sales and use tax return or pay sales and use tax that is due by a
person located in an area designated in an executive order or proclamation
issued by the governor declaring a state of disaster or state of emergency,
or an area that the president of the United States declares a major
disaster or emergency, if the comptroller finds the person to be a
victim of the disaster or emergency. The person owing the sales and
use tax may file a written request for an extension at any time before
the expiration of 90 days after the original due date. If an extension
is granted, interest on the unpaid tax does not begin to accrue until
the day after the day on which the extension expires, and penalties
are assessed and determined as though the last day of the extension
were the original due date.
(g) Reporting periods.
(1) Quarterly filers. Permit holders who have less
than $1,500 in state sales and use tax per quarter to report may file
sales and use tax returns quarterly. The quarterly reporting periods
end on March 31, June 30, September 30, and December 31.
(2) Yearly filers. Permit holders who have less than
$1,000 in state sales and use tax to report during a calendar year
may file yearly sales and use tax returns upon authorization from
the comptroller.
(A) Authorization to file sales and use tax returns
on a yearly basis is conditioned upon the correct and timely filing
of prior returns.
(B) Authorization to file sales and use tax returns
on a yearly basis will be denied if a permit holder's liability exceeded
$1,000 in the prior calendar year.
(C) A permit holder who files on a yearly basis without
authorization is liable for applicable penalty and interest on any
previously unreported quarter.
Cont'd... |
