This is a guidebook of basic concepts related to sales and use tax through the lenses of contractors. The major focus is helping contractors understand how to complete their Texas Sales and Use Tax return correctly.
- definitions every contractor and subcontractor should know
- calculating total sales, taxable sales, taxable purchases,
- cash basis vs accrual basis
- bad debts and bad debt write-offs
- resale, exemption and direct payment exemption certificates
- taxable purchases and use tax
Please note that this guidebook does not discuss the taxability treatment of miscellaneous construction projects in Texas. It is a framework about sales and use tax designed for beginner’s who need basic information.