Will Texas accept the Uniform Sales & Use Tax Certificate - Multijurisdiction as a valid resale certificate, and what does a Texas seller need to accept a resale certificate from an out-of-state retailer?

Plain-English summary

A business asked the Comptroller whether Texas would accept the Uniform Sales & Use Tax Certificate - Multijurisdiction (a common multi-state resale certificate form) and when it's proper to use.

The Comptroller confirmed it can be used: Rule 3.285(h) requires a resale certificate to be substantially in the form of either the Texas Sales and Use Tax Resale Certificate or a Border States Uniform Sale for Resale Certificate, so the multijurisdiction form qualifies AS LONG AS it contains the information Texas's own resale certificate requires (Rule 3.285(g)) and is used for items purchased for resale, lease, or rental within the United States (including territories and possessions) or within Mexico — either in the item's present form or as an attachment to/integral part of another taxable item.

The letter also walks through the separate rules for accepting a resale certificate from an out-of-state retailer under Rule 3.285(d): a Texas seller may accept a resale certificate from a bona fide retailer located outside Texas, provided the certificate shows the purchaser's signature and address, the state the property is being taken to for resale, and either the purchaser's Texas sales tax permit number or their home-state registration number. Mexican retailers must additionally show their Federal Taxpayers Registry (RFC) identification number and attach a copy of their Mexican Registration Form. An invoice describing the purchased item and showing the exact address it will be resold from must be attached, along with a statement of the purchaser's business type and the kinds of items it sells. Notably, a Texas seller can accept an out-of-state retailer's resale certificate even when shipping the item directly to a Texas recipient, and the Texas seller is NOT responsible for determining whether the out-of-state retailer actually needs (or has) a Texas sales tax permit.

What this means for you

Multistate and border-region wholesalers/retailers

The Uniform Sales & Use Tax Certificate - Multijurisdiction is a valid resale certificate in Texas as long as it captures all the content Texas's own certificate requires — you don't need to insist on the Texas-specific form if your customer presents the uniform multijurisdiction version with complete information.

Texas sellers accepting resale certificates from out-of-state buyers

Collect the full package required by Rule 3.285(d): signature, address, destination state, permit/registration number, and a supporting invoice showing the resale address and business type. For Mexican retailers, also collect the RFC number and Mexican Registration Form copy. You can ship directly to a Texas address without jeopardizing the certificate's validity, and you're not on the hook for verifying the out-of-state retailer's own permit status.

Accountants and tax professionals

This letter is a useful two-part reference: form-acceptability for the common multijurisdiction certificate (Rule 3.285(g), (h)) plus the specific documentation checklist for out-of-state retailer resale certificates (Rule 3.285(d)) — worth pulling whenever a client's resale-certificate compliance is being reviewed for cross-border or multistate sales.

Common questions

Q: Does Texas accept the Uniform Sales & Use Tax Certificate - Multijurisdiction?
A: Yes, as long as it contains all the information required on Texas's own resale certificate and covers a qualifying resale/lease/rental transaction.

Q: What must an out-of-state retailer's resale certificate include?
A: Signature and address of the purchaser, the destination state for resale, the purchaser's sales tax permit or home-state registration number, and (for Mexican retailers) their RFC number plus a copy of their Mexican Registration Form — plus a supporting invoice.

Q: Can a Texas seller ship directly to a Texas recipient and still accept an out-of-state retailer's resale certificate?
A: Yes.

Q: Is the Texas seller responsible for confirming the out-of-state retailer holds a valid Texas permit?
A: No — the Texas retailer is not responsible for determining whether the out-of-state retailer needs or holds a Texas sales and use tax permit.

Q: Can other businesses rely on this exact letter?
A: No. This is a Texas STAR letter ruling binding on the Comptroller only for the taxpayer it addresses (34 Tex. Admin. Code Rules 3.1, 3.10); confirm your own facts with a tax professional.

Citations and references

Rules:

• 34 Tex. Admin. Code § 3.285(a)(2), (d), (g), (h) (Resale Certificate requirements and acceptance)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200008624L

Original ruling text

August 25, 2000

From: Gilbert Zamora

To:

Subject: Uniform Sales & Use Tax Certificate - Multijurisdiction

Thank you for your e-mail inquiry about Texas' acceptance of the Uniform Sales
& Use Tax Certificate - Multi-jurisdiction and when is it acceptable to use
this form.

Response: Subsection (h) of Rule 3.285 - Resale certificates, provides that
"(a) resale certificate must be substantially either in the form of a Texas
Sales and Use Tax Resale Certificate or a Border States Uniform Sale for Resale
Certificate." Therefore, the Uniform Sales & Use Tax Certificate -
Multi-jurisdiction, can be used if it contains the information required on our
resale certificate and you are purchasing items for resale, lease, or rental
within the geographical limits of the United States, its territories and
possession or within Mexico, in its present form or as an attachment to or
integral part of other taxable items. Subsection (g) of Rule 3.285 addresses
the required content of a resale certificate.

You may also wish to review subsection (d) of Rule 3.285 that addresses the
acceptance of certificates from retailers outside Texas as follows: (1) A
seller in Texas may accept a resale certificate in lieu of tax from a bona fide
retailer located outside Texas who purchases taxable items for resale as
defined in subsection (a) of this section.

(2) The resale certificate must show the signature and address of the
purchaser, the state to which the property is taken for resale, the sales tax
permit number, if any, or the registration number assigned to the purchaser by
the purchaser's home state. Mexican retailers who purchase taxable items for
resale must show their Federal Taxpayers Registry (RFC) identification number
for Mexico on the resale certificate and give a copy of their Mexican
Registration Form to the Texas seller. An invoice describing the taxable item
purchased and showing the exact street address or office address from which the
taxable item will be resold must be attached to the resale certificate. The
resale certificate must also state the type business engaged in by the
purchaser and the type items sold in the regular course of business. A resale
certificate may be accepted from the bona fide out-of-state retailer even if
the Texas retailer ships or delivers the taxable item directly to a recipient
located inside Texas.

(3) The Texas retailer is not responsible for determining whether the
out-of-state retailer is required to hold a Texas sales and use tax permit or
to enter a Texas permit number on the resale certificate.

Subsection (a)(2) of Rule 3.285 addresses the limitations on when a resale
certificate may be issued.

A complete set of rules, along with the text of the Tax Code, and a wealth of
other information are available through our website at
through the "Texas Taxes" window.

This opinion is based on the facts presented. Other facts though similar may
provide a different result.

I hope this information answers your questions. If you need additional
information, You may e-mail our tax help section at .
You may also call me toll-free at 1-800-531-5441, extension 3-4502. The
direct line is 512/463-4502. You may also write to Tax Policy Division,
Comptroller of Public Accounts.

Gilbert Zamora

Tax Policy Division