If a Texas seller ships or personally delivers a taxable item to a customer outside Texas, is Texas sales tax due — and what proof should the seller keep?

Plain-English summary

A seller asked the Comptroller about the sales tax treatment of out-of-state sales and what records to keep to support them. The Comptroller confirmed the basic rule and the documentation practice:

• No Texas sales tax is due when a Texas seller ships or delivers a taxable item to a location outside Texas.
• Keep documentation proving the out-of-state delivery: a shipping invoice is the standard proof when the item is shipped by carrier.
• If the seller personally travels out of state to deliver the item, the seller should keep a copy of their own airplane ticket, or other documentation, proving they delivered the item to a location outside Texas.

What this means for you

Texas retailers who ship or personally deliver goods out of state

Treat the sale as exempt from Texas sales tax when delivery genuinely occurs outside Texas — but keep your proof. A shipping invoice covers a carrier-shipped sale; if you deliver the item yourself by traveling out of state, keep travel records (like an airplane ticket) as your documentation.

Accountants and tax professionals

This letter is a useful, plainly-stated recordkeeping checklist for the out-of-state delivery exemption — it doesn't cite a specific statute or rule, but confirms what evidence the Comptroller looks for on audit to substantiate an exempt out-of-state sale, including the less common personal-delivery scenario.

Common questions

Q: Is Texas sales tax due on an item shipped to a customer outside Texas?
A: No, not when the seller actually ships or delivers the item to a location outside Texas.

Q: What if I deliver the item myself instead of shipping it?
A: Keep a copy of your airplane ticket (or other documentation) proving you personally delivered the item outside Texas.

Q: What proof should I keep for a shipped (not personally delivered) out-of-state sale?
A: Documentation such as a shipping invoice.

Q: Can I rely on this letter for my own sales?
A: No. This opinion is based on the facts presented, and additional or different facts may yield different results; it can be relied on only by the taxpayer it was issued to.

Citations and references

No statutes or rules are cited in the letter's text.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200002055L

Original ruling text

February 15, 2000

Dear **:

Thank you for your recent letter regarding out-of-state sales and Texas sales
tax.

If a Texas seller ships or delivers a taxable item to a location outside the
State of Texas, no Texas sales tax is due. The seller should keep
documentation such as a shipping invoice to prove the sale is an exempt
out-of-state sale.

If the seller travels outside the state to deliver a taxable item, they should
keep a copy of their airplane ticket or other documentation proving they
delivered the item to a location outside Texas.

This opinion is based on the facts presented. Additional or different facts
may yield different results.

You may call me toll free 1-800-531-5441, extension 5-9787, of you have any
questions or need more information. The direct line is 512/305/9787. You may
also write to Tax Policy Division, Comptroller of Public Accounts.

Sincerely,

Philip Knisely
Tax Policy Division