Sellers – What You Need to Know About Texas Sales Tax Holiday in August

Advertising for Non-Qualifying Items

If you sell items that do not qualify for the sales tax holiday exemption, you can advertise that you are paying the sales tax for your customers. The following conditions apply:

–You must indicate in an advertisement or statement that you are paying sales tax for your customer;

–You may not indicate or imply that the sale is exempt or excluded from tax; and

–Any purchaser’s receipt or statement you provide to your customer must separately state the amount of sales tax and indicate the tax will be paid by the seller.

Reporting Tax

If you sold qualifying items tax free during the sales tax holiday, only include these tax-free sales in Total Texas Sales (Item 1) of your sales tax return. Do not include your tax-free sales in Taxable Sales (Item 2).

Be aware, if you sold qualifying exempt items and collected sales tax, then you must remit it to our office.

For more information, visit the Comptroller’s website at comptroller.texas.gov/taxes/publications/98-490