Exempt certificates and resale certificates are very similar documents with the major difference being that an exemption certificate does not require a taxpayer ID number to be legally valid.

You must obtain a Texas sales and use tax permit if you are an individual, partnership, corporation or other legal entity engaged in business in Texas and you: Sell tangible personal property in Texas; Lease or rent tangible personal property in Texas; Sell taxable services in Texas; or.

You'll need to collect sales tax in Texas if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state.

You will need to apply using form AP-201, Texas Application (PDF). Email the application to sales.applications@cpa.texas.gov or fax the application to 512-936-0010. To complete the application, you will need the following documentation: Sole owner's Social Security number.

An exemption certificate must be in substantially the form of a Texas Sales and Use Tax Exemption Certification, Form 01-339 (Back). Copies of the form may be obtained from the Comptroller of Public Accounts, Tax Policy Division or by calling 1-800-252-5555.

You need to submit a resale certificate each time you make a purchase of goods for resale. A seller cannot legally sell you goods tax free without a properly completed, original resale certificate.

Federal and Texas government entities are automatically exempt from applicable taxes. Nonprofit organizations must apply for exemption with the Comptroller's office and receive exempt status before making tax-free purchases.