Texas Adopts Rule Defining Locations for Online Order Sales Tax Collection

• The Comptroller of Public Accounts for Texas has added a new rule defining where local tax is due on sales for online orders fulfilled from warehouses
• The rule states that the location where an order is “received” is the physical location of the seller or third party where all necessary information from the purchaser has been received
• This rule aligns with the Streamlined Sales Tax Agreement, even though Texas is not a member state
• The Comptroller has been in litigation with cities in Texas over proposed changes to sales and use tax sourcing rules since 2021
• The rule aims to promote uniformity with other states that have elected origin-based sourcing for local sales tax orders.

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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