Unsure where you owe sales or use tax
Run Your Nexus Risk CheckTexas economic nexus is established when a remote seller exceeds 500000 dollars in total Texas revenue during the preceding twelve month period.
Once this threshold is exceeded, the business is generally required to:
Economic nexus applies even if the business has no physical presence in Texas.
Run Your Nexus Risk CheckTexas requires remote sellers to register once total revenue into Texas exceeds 500000 dollars in the previous twelve months. The threshold is revenue based and does not depend on the number of transactions. Texas uses a rolling twelve month measurement period rather than a calendar year model.
Texas generally measures total revenue from sales delivered into Texas.
This may include:
Understanding what is included in gross revenue is critical before registering.
Before registering or filing, confirm whether your business has created sales tax nexus in California or Texas.
Run Your Nexus Risk CheckRegistration is generally required once the threshold is exceeded in the prior twelve month period.
After nexus is established, businesses must:
Failing to register may create back tax exposure.
Economic nexus is revenue driven.
Physical nexus may arise from:
A business may have nexus through physical presence even if it does not exceed the 500000 threshold.
If your business crossed the Texas economic nexus threshold but did not register, you may have exposure for prior periods.
Potential consequences include:
Voluntary disclosure may reduce certain penalties if pursued before enforcement contact.
Texas Voluntary Disclosure Agreement | Sales Tax Penalties and Interest Texas
Crossing the economic nexus threshold creates registration and collection obligations. If you are unsure when you crossed the threshold, evaluate your exposure before filing.
Run Your Nexus Risk CheckDetermine your Texas nexus position before registering.