What does Texas e-commerce accounting include?
Each channel’s payout broken into gross sales, fees, refunds and reserves and matched to the bank; marketplace sales separated from direct sales; Texas sales and use tax rates set to match how you collect; Texas revenue tracked against the remote-seller safe harbor; inventory tied to cost of goods sold; and a monthly close with margin by channel, in your own QuickBooks file.
When does an out-of-state seller have to collect Texas tax?
The Comptroller sets a $500,000 safe harbor: a remote seller with less than $500,000 in total Texas revenue over the preceding twelve calendar months does not need a permit or need to collect. A remote seller that exceeds it must obtain a permit and begin collecting and remitting state and local use tax on sales to Texas customers no later than the first day of the fourth month after the month it went over. Whether and when you cross the line is a question for your CPA; the books show the rolling figure.
What is the single local use tax rate, and who can use it?
It is an alternative local rate that remote sellers can collect instead of the total local tax at each delivery address. The Comptroller lists it at 1.75 percent, published in the Texas Register each year. A new remote seller elects it on the sales and use tax application; an existing one files Form 01-799. Businesses located in Texas are not remote sellers and cannot use it, and it is not available to a marketplace provider collecting for marketplace sellers.
Who collects the tax on my Amazon or Walmart sales in Texas?
The marketplace provider. It must collect, report and remit state and local sales and use tax on all sales made through its marketplace, and certify to its sellers that it does. A remote seller who sells only through such a marketplace does not need a Texas permit; a Texas seller still needs one and files its own returns even if every sale goes through a marketplace. Every seller keeps records of marketplace sales for at least four years.
I sell from a location in Texas. Which local rate applies?
In general, the Comptroller says local sales tax is based on the seller’s place of business, and an order filled from that location is taxed there. Local use tax can still be due where an item is shipped or delivered, and total local tax cannot exceed 2 percent on top of the 6.25 percent state rate. The single local use tax rate is not available to Texas-located businesses. Your CPA confirms how the rules apply to your locations; the books then carry those rates.
How do you reconcile Shopify and Amazon payouts?
Each payout is split into gross sales, refunds, channel fees, ad charges and reserve holds, usually from a settlement tool such as A2X, and the net is matched to the bank deposit. Tax collected on direct sales goes to your liability; tax the marketplace provider collected and remitted stays out of it. The channel report, the books and the bank then agree.
Do you file my Texas sales tax?
No. TechBrot does not prepare or file tax returns; we work with your CPA or EA, or introduce you to one. We keep the sales, marketplace and liability figures each return is prepared from, and the records the Comptroller expects you to keep.