Unsure where you owe sales or use tax
Run Your Nexus Risk CheckA Texas resale certificate allows a buyer to purchase tangible goods for resale without paying sales tax at the time of purchase.
To be valid in Texas, a resale certificate must:
If a resale certificate is missing or invalid, the Texas Department of Tax and Fee Administration may assess tax, penalties, and interest during audit.
Run Your Nexus Risk CheckA resale certificate is documentation provided by a purchaser to a seller stating that the purchased goods are intended for resale in the regular course of business.
In Texas, resale certificates are commonly used by:
A resale certificate shifts responsibility for tax collection from the seller to the buyer for that transaction.
Sellers accepting resale certificates must:
If the certificate is incomplete or inconsistent with the transaction, the CDTFA may disallow the exemption. Failure to retain valid resale documentation may convert an exempt sale into a taxable sale.
A valid resale certificate typically includes:
Texas does not mandate a single specific form, but required information must be present. Improperly completed certificates may be disallowed in audit.
During a Texas sales tax audit, the CDTFA may:
If documentation is insufficient, the CDTFA may assess:
Texas Sales Tax Audit Process | Texas Back Sales Tax Liability | Texas Sales Tax Penalties and Interest
Resale certificates do not eliminate nexus.
Even if all sales are for resale, a business may still create nexus if:
Exempt sales still count toward the economic nexus threshold.
Texas Economic Nexus Threshold | Wholesale Sales Tax Nexus Texas
Resale certificate errors are one of the most common triggers for additional tax assessments.
If your business accepts resale certificates in Texas, evaluate whether your documentation practices expose you to audit risk.
Run Your Nexus Risk Check