Does simply exhibiting at a trade show in Texas create nexus, requiring an out-of-state exhibitor to hold a Texas sales and use tax permit?

Plain-English summary

A tax professional asked, on behalf of a client who participates in trade shows at various locations, whether simply exhibiting at a trade show in Texas creates nexus — a taxable connection to the state requiring registration and tax collection. The letter quotes directly from Comptroller Publication 96-276, "Trade Shows and the Texas Sales and Use Tax": exhibitors participate in trade shows to solicit business, and if products are sold at the show, orders are taken there and later accepted out of state, or the show is used to promote future sales, any exhibitor selling taxable items needs a Texas sales and use tax permit.

Practically, that means companies selling items subject to Texas sales tax must hold a Texas sales tax permit if they participate in a Texas trade show, and they're required to collect, report, and remit Texas sales tax on all sales shipped or delivered to Texas customers for a full 12-month period following the date of that trade show participation — not just sales made at the show itself.

What this means for you

Out-of-state companies exhibiting at Texas trade shows

Merely showing up and exhibiting isn't automatically enough by itself, but the bar is easy to clear: selling products at the show, taking orders there for out-of-state acceptance, or using the show to promote future sales all trigger the permit requirement. If any of those apply, you need a Texas sales and use tax permit.

Sales and tax compliance teams tracking trade show participation

The 12-month collection window is the detail most likely to be missed — it's not just the sale made at the booth, but every sale shipped or delivered into Texas for the full year following the show. Track trade show dates carefully to know when that window opens and closes.

Accountants and tax professionals advising multistate exhibitors

This letter is a direct restatement of Comptroller Publication 96-276's trade-show nexus guidance — useful as a citable, letter-ruling-level confirmation of that publication's rule for clients weighing whether a single Texas trade show appearance creates a compliance obligation.

Common questions

Q: Does just walking the floor or attending a Texas trade show create nexus?
A: The letter's guidance is about exhibitors who solicit business — nexus is triggered specifically by selling taxable items at the show, taking orders there for later out-of-state acceptance, or using the show to promote future sales.

Q: How long does the tax collection obligation last after a single trade show?
A: A full 12 months following the date of trade show participation — the exhibitor must collect, report, and remit tax on all sales shipped or delivered to Texas customers during that period.

Q: Where can I find the Comptroller's fuller guidance on this topic?
A: Comptroller Publication 96-276, "Trade Shows and the Texas Sales and Use Tax," which this letter quotes directly.

Citations and references

Statutes and rules:

• Comptroller Publication 96-276, "Trade Shows and the Texas Sales and Use Tax"

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200006394L

Original ruling text

June 7, 2000

Dear **:

Thank you for your recent letter regarding your client and Texas sales tax.

You stated that your client participates in trade shows at various locations.
You asked if merely exhibiting at a trade show in Texas creates nexus. You
quoted Texas sales tax publication 96-276 "Trade Shows and the Texas Sales and
Use Tax."

"Exhibitors participate in trade shows to solicit business. If products are
sold at the show, or if orders are taken and later accepted out of state, or if
the show is used to promote sales in the future, any exhibitor selling taxable
items needs a Texas sales and use tax permit.

Companies that sell items that are subject to Texas sales tax are required to
hold a Texas sales tax permit if they participate in a trade show in Texas.
They are required to collect, report and remit Texas sales tax on all sales
shipped or delivered to customers in Texas for a 12 month period following the
date they participate in the trade show.

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, if 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