How to Get a Reseller Permit in Texas: Application and Requirements

To get a reseller permit in Texas, apply for a Texas Sales and Use Tax Permit through the Comptroller of Public Accounts. It is free, you can file online or by mail using Form AP-201, and the physical permit typically arrives within two to three weeks.¹ Once the permit is issued, you can buy inventory tax-free by giving suppliers a resale certificate, and you take on the job of collecting sales tax from your own customers and sending it to the state.

What the Permit Actually Does

Texas charges 6.25 percent state sales tax on most tangible goods and many services, and local jurisdictions can add up to 2 percent more, so the combined rate can reach 8.25 percent.² The tax is meant to be paid once, by the final consumer. Without a permit, a retailer would pay sales tax buying from a wholesaler and then charge it again at the register, taxing the same item twice.

The permit is your proof to the state and to suppliers that you are a registered seller who will collect and remit tax on the final sale. It does not make you personally exempt from sales tax on everything you buy. It only covers items purchased specifically for resale.

What to Gather Before You Apply

The application is Form AP-201, the Texas Application for Sales and Use Tax Permit. Have this information ready before you start:¹

Social Security Number if you are a sole proprietor, or a Federal Employer Identification Number from the IRS if your business is a corporation, partnership, or LLC with employees.
The NAICS code that best describes your primary business activity. You can look this up on the U.S. Census Bureau website.
Your entity type: sole proprietorship, general partnership, limited partnership, LLC, corporation, or other. This controls how the Comptroller registers and communicates with you.
Names, Social Security Numbers, and home addresses for every owner, officer, director, or partner.
The physical address where you do business, plus a mailing address if it is different.
Your business start date and estimated monthly sales. The Comptroller uses the sales estimate to assign your filing frequency.

There is no application fee. The Comptroller may require a security bond in some situations, for example if you previously held a permit that was revoked or if you owe outstanding taxes.³

How to Submit Your Application

Online

The fastest route is the Comptroller’s eSystems portal. Open the Texas Online Tax Registration Application page and select the option to apply for a new permit.¹ The system walks you through each section of Form AP-201, then asks you to confirm entries on the review screens, sign electronically, and save a submission receipt.

One limit to know: if you are a sole owner, partner, officer, or director without a Social Security Number, you cannot use the online application. You have to file on paper instead.¹

By Mail

Download Form AP-201 from the Comptroller’s website, fill it out in Adobe Reader, print it, and mail it to:⁴

Comptroller of Public Accounts
111 E. 17th St.
Austin, TX 78774-0100

What Happens After You Apply

The Comptroller reviews your application against existing tax records. Most applicants receive their physical permit in the mail within two to three weeks.¹ If anything is missing or inconsistent, the Comptroller may reach out during that window. Once the permit arrives with your 11-digit taxpayer identification number, you can start collecting sales tax and issuing resale certificates.

The permit does not expire. It stays valid as long as you are actively engaged in business as a seller. If you stop selling, close the account and return the permit for cancellation. The Comptroller can also cancel the permit if it determines you are no longer operating as a seller.³

Using Your Permit to Buy Inventory Tax-Free

The permit and the resale certificate are two different documents. Your permit registers you with the state. The resale certificate is what you hand a supplier at the point of purchase to claim the exemption. The certificate only works because it carries your permit number.⁵

A properly completed Texas Sales and Use Tax Resale Certificate (Form 01-339, front) includes:

The legal name and address of the purchasing business.
Your 11-digit Texas sales tax permit number.
A description of the items you are buying for resale.
Your signature and the date, certifying that the items will be resold.

A supplier who accepts a properly completed resale certificate in good faith is relieved of the duty to collect sales tax on that transaction.⁶ Signing it shifts the tax collection duty to you when you eventually sell the item. If you end up using the item personally or in your own operations instead of reselling it, you owe use tax on that purchase.

Keep your sales tax records, including resale certificates you issue and receive, for at least four years from the date the record was created. For resale and exemption certificates, the four years runs from the last sale covered by the certificate. If a dispute or audit is pending, hold the records until it is resolved, even past the four-year mark.⁷

What Holding the Permit Commits You To

Once the permit is active, you have to file Texas sales tax returns on schedule, even in periods when you have zero sales or no tax to report.³⁸⁹

Filing a return late triggers an automatic $50 penalty per report, whether or not you owe tax for that period, and it applies on top of any other penalties or interest.¹⁰ Missing deadlines repeatedly can lead to permit cancellation.

Using a resale certificate to skip sales tax on items you never intend to resell is a criminal offense in Texas, graded by the amount of tax avoided:¹¹

Less than $20: Class C misdemeanor.
$20 to less than $200: Class B misdemeanor.
$200 to less than $750: Class A misdemeanor.
$750 or more: third-degree felony.

The Comptroller can also revoke the permit and assess back taxes plus penalties and interest on any purchases improperly claimed as exempt. Use the certificate only for items you genuinely plan to resell in the regular course of your business.

1
Texas Comptroller. Texas Online Tax Registration Application
2
Comptroller of Public Accounts. Local Sales and Use Tax Collection – A Guide for Sellers
3
Texas Comptroller of Public Accounts. Texas Sales and Use Tax Frequently Asked Questions
4
Texas Comptroller. Form AP-201 – Texas Application for Sales and Use Tax Permit
5
Cornell Law School. 34 Texas Administrative Code 3-287 – Exemption Certificates
6
Cornell Law School. 34 Texas Administrative Code 3-285 – Resale Certificate; Sales for Resale
7
Cornell Law School. 34 Texas Administrative Code 3-281 – Records Required; Information Required
8
Texas Comptroller. File and Pay
9
Texas Comptroller. Getting Started with Webfile
10
Texas Comptroller of Public Accounts. Late Filing Penalty
11
State of Texas. Texas Tax Code 151-7075 – Failure to Produce Certain Records After Using Resale Certificate; Criminal Penalty