| (B) The amount of sales and use tax due must be separately
stated on the bill, contract, or invoice to the purchaser or there
must be a written statement to the purchaser that the stated price
includes sales or use tax. Contracts, bills, or invoices that merely
state that "all taxes" are included are not specific enough to relieve
either party to the transaction of its sales and use tax responsibilities.
The total amount that is shown on such documents is presumed to be
the taxable item's sales price, without sales and use tax included.
The seller or purchaser may overcome the presumption by using the
seller's records to show that sales or use tax was included in the
sales price. Sellers located outside of Texas must identify the tax
as Texas sales or use tax on their bill, contract, or invoice to the
purchaser. If the out-of-state seller does not identify the tax as
Texas sales or use tax at the time of the transaction, the seller
is presumed not to have collected Texas sales or use tax. Either the
seller or the purchaser may overcome the presumption by submitting
evidence that clearly demonstrates that the Texas sales or use tax
was remitted to the comptroller.
(3) Direct sales organizations. A direct sales organization
is responsible for the collection and remittance of the sales and
use tax on all sales of taxable items in this state by the independent
salespersons who sell the organization's product or service as explained
in this paragraph. See subsection (b)(4) of this section for information
about sales and use tax permits required to be held by direct sales
organizations.
(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) ("Sale"
or "Purchase"). See also §3.283 of this title (relating to Bartering
Clubs and Exchanges).
(4) Payment of certain sales and use taxes by a seller.
A seller may directly or indirectly advertise, hold out, or state
to a purchaser or to the public that the seller will pay the sales
and use tax for the customer if:
(A) the seller indicates in the advertisement, holding
out, or statement that the seller is paying the tax for the purchaser;
(B) the seller does not indicate or imply in the advertisement,
holding out, or statement that the sale is exempt or excluded from
taxation; and
(C) any purchaser's receipt or other statement given
to the purchaser identifying the sales price paid or to be paid by
the purchaser separately states the amount of the tax and indicates
that the tax will be paid by the seller.
(5) 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.
(6) 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 (Persons
Who May be Regarded as Retailers), 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).
(7) Local sales and use tax. A seller who is required
to be permitted 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 (Electronic Transfer of Certain Payments)
and §111.0626 (Electronic Filing of Certain Reports). 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.
Cont'd... |
