TEXAS TAX-EXEMPT & RESALE PURCHASING
Some qualified Texas organizations and businesses buying merchandise for resale may document eligible purchases without paying Texas sales tax. LS Custom helps you identify the paperwork we need before invoicing.
Eligibility comes from Texas law and your purchasing facts—not from buying from LS Custom. General information only; not tax or legal advice.
A SIMPLER PURCHASING PATH
✓ Qualified exempt organization
✓ Legitimate purchase for resale
✓ Not sure? Ask what documentation we need
TWO COMMON B2B PATHS
Texas organizations that have qualified for sales-tax exemption can generally issue a properly completed exemption certificate for taxable goods or services that further the organization’s exempt purpose.
Examples can include qualifying religious, charitable and educational organizations, certain qualifying 501(c) organizations, and governmental entities.
Check Texas exemption guidance →A purchaser acquiring taxable items for legitimate resale, rental or lease may use the Texas resale certificate when the legal requirements are met.
The certificate is not for merchandise the purchaser knows is being bought for its own use rather than resale.
Open Form 01-339 →THE CLIENT BENEFIT
If your purchase legally qualifies, getting the certificate to us before invoicing can make the process cleaner for accounting and procurement.
Illustrative example only
If a valid exemption applies, sales tax would not be charged on the qualifying purchase. Actual rates and eligibility vary.If a valid exemption applies, that tax would not be charged on the qualifying purchase. Actual rates and eligibility vary.
THREE STEPS
Exempt organization, resale purchase, or unsure.
For common Texas paths, provide a properly completed Form 01-339 or other applicable documentation.
We document the basis for exempt treatment; incomplete or unsupported certificates may not be accepted.
IMPORTANT DISTINCTIONS
Not every nonprofit qualifies. Some organizations must apply to the Texas Comptroller.
An exempt organization’s purchase generally must further its exempt purpose.
A resale certificate is for qualifying resale transactions, not merchandise bought for the purchaser’s own use.
Form 01-339 tells purchasers to furnish the completed certificate to the supplier, not the Comptroller.
BUYER FAQ
For common Texas resale and organizational exemption claims, Form 01-339 contains the resale certificate and exemption certification. The correct portion depends on your situation.
Not necessarily. Texas exemption requirements and the facts of the purchase still matter. Verify your organization’s Texas status.
Potentially, if the organization qualifies under Texas rules and the purchase meets the exemption requirements.
Potentially, when the merchandise is genuinely being purchased for resale and the transaction satisfies Texas resale rules.
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We’ll make the documentation step part of the quote process.
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