Unsure where you owe sales or use tax
Run Your Nexus Risk CheckA wholesale business creates Texas sales tax nexus when it exceeds 500000 dollars in Texas revenue during the preceding twelve month period or establishes physical presence in the state.
Even if wholesale transactions are exempt for resale, nexus may still require:
Exempt sales do not eliminate nexus obligations.
Run Your Nexus Risk CheckTexas applies a 500000 dollar revenue threshold measured over a rolling twelve month period.
For wholesale companies, this may include:
Revenue delivered into Texas counts toward economic nexus even if sales are exempt.
Wholesale transactions are often exempt when supported by valid resale certificates.
However:
Texas audits frequently review resale documentation.
Before registering or filing, confirm whether your business has created sales tax nexus in California or Texas.
Run Your Nexus Risk CheckWholesale businesses often create physical nexus through:
Inventory presence alone may create nexus regardless of revenue level.
If nexus existed but no permit was obtained, exposure may include:
Wholesale audits often examine both sales and purchase records.
Wholesale distribution frequently creates unintended compliance exposure.
If your business ships products into Texas or stores inventory in state, evaluate exposure before registering.
Run Your Nexus Risk CheckIdentify potential wholesale nexus exposure before penalties escalate.