Para qué sirve el formulario
Texas Form 01-117, officially titled the "Texas Sales and Use Tax Return – Short Form," is the simplified monthly, quarterly, or yearly tax return used by businesses with a single active location to report sales and use tax collected during a reporting period. This form serves permit holders who operate at one business location and collect the 6.25 percent state sales tax plus any applicable local sales taxes (up to 2 percent additional) on taxable goods and services sold, leased, or rented in Texas.
The short form is specifically designed for businesses that have one outlet and do not report local sales taxes for jurisdictions outside their primary business location. If you hold a Texas sales and use tax permit, you must file this return even during periods when you have zero taxable sales to report. The form allows you to report your total sales, calculate taxable sales, report any taxable purchases on which you owe use tax, and claim the timely filing discount of 0.5 percent if you file and pay on time.
Businesses with multiple locations or those reporting local sales tax for multiple jurisdictions must instead use Form 01-114 (the long form) along with Form 01-115 (Outlet Supplement). The Texas Comptroller's office determines your filing frequency—monthly, quarterly, or yearly—based on your tax liability during the preceding state fiscal year (September 1 through August 31), and you will be notified by letter after your sales tax permit is approved.
When You’d Use Form 01-117
Filing Schedule
You use Form 01-117 during your regular reporting cycle according to the filing frequency assigned to you by the Texas Comptroller. Monthly filers submit returns by the 20th day of the month following the reporting month (for example, April sales are reported by May 20). Quarterly filers report on April 20 (January-March), July 20 (April-June), October 20 (July-September), and January 20 (October-December). Yearly filers submit their annual return by January 20 for the previous calendar year. When a due date falls on a Saturday, Sunday, or legal holiday, the next working day becomes the due date.
Late Returns
If you miss the filing deadline, you must still submit Form 01-117 as soon as possible. Late filing triggers specific penalties: a $50 penalty for filing after the due date (even if no tax is owed), plus a 5 percent penalty on the tax amount if paid 1-30 days late, or 10 percent if paid over 30 days late. Additionally, interest begins accruing on unpaid taxes starting on the 61st day after the due date. The interest rate varies annually and is set at the prime rate plus 1 percent. Even if you have no sales to report, failing to file a required return can result in estimated billings, collection actions, tax liens, or permit suspension.
Declaraciones rectificativas
You need to file an amended Form 01-117 when you discover errors on a previously filed return—whether you underreported sales, overreported deductions, miscalculated local tax rates, or made other mistakes affecting your tax liability. To amend, make corrections on a copy of your original return or complete a new form with accurate information. Clearly write "Amended Return" at the top of the form, sign and date it, and mail it to the Comptroller of Public Accounts, 111 E. 17th Street, Austin, Texas 78774-0100. If you underpaid, include the additional tax due plus applicable penalties and interest with your amended return. If you overpaid, you may be eligible for a refund by following the procedures outlined on the Texas Comptroller's Sales Tax Refunds webpage.
Key Rules or Details for 2018
Filing Requirements
Several critical rules govern the proper completion and submission of Form 01-117. First, permit holders are legally required to file a return for every reporting period, even when there are no taxable sales or purchases—failure to do so can result in penalties, estimated billings, and enforcement actions. The Comptroller's office may send estimated billings if you fail to file, which carry the full force of law unless you submit actual data promptly.
Discounts and Prepayments
Second, you can claim a timely filing discount of 0.5 percent on the tax amount when you file and pay on or before the due date. This discount compensates sellers for collecting tax on behalf of the state. Monthly and quarterly filers can potentially claim an additional 1.25 percent prepayment discount (for a combined 1.75 percent) if they prepay at least 90 percent of the current period's tax or 100 percent of the same period's tax from the previous year by the 15th day of the month.
Métodos de presentación
Third, filing and payment methods depend on your tax liability during the preceding state fiscal year. If you paid $50,000 or more in sales tax during that period, you must file and pay electronically—paper returns are not accepted. Taxpayers who paid $500,000 or more must use TEXNET for electronic funds transfer or EDI (Electronic Data Interchange). Those below these thresholds may use Webfile, paper forms, TeleFile (for zero-tax-due returns only), or checks.
Use Tax Requirements
Fourth, use tax reporting is mandatory. If your business purchased taxable items for business or personal use from out-of-state vendors who did not collect Texas sales tax, you must report and pay use tax on these purchases in Item 3 (Taxable Purchases) of the return. Use tax ensures that goods used in Texas are taxed regardless of where they were purchased.
Local Tax Accuracy
Finally, accurate local tax rate reporting is essential. Texas has varying local sales tax rates across cities, counties, transit authorities, and special purpose districts. You must use the correct combined state and local rate that applies at your business location, which you can verify using the Texas Comptroller's Sales Tax Rate Locator tool available online.
Paso a paso (visión general)
Verify Business Information
Completing Form 01-117 follows a logical sequence. Begin by verifying your preprinted taxpayer information in the header section: your 11-digit Texas taxpayer number, business name, outlet number, filing period (month/quarter/year), and mailing address. If any information is incorrect or has changed, mark the address change box and provide updated information.
Item 1 – Total Sales
Enter your total gross sales, leases, and rentals for the reporting period before any deductions. This includes all revenue from your business operations, whether taxable or not. If you had no sales, enter "0."
Item 2 – Taxable Sales
Report the portion of total sales that is subject to Texas sales tax. This excludes exempt sales such as items sold for resale with a valid resale certificate, exempt food products, prescription drugs, and other specifically exempted items under Texas law. Calculate the tax due by multiplying taxable sales by your total tax rate (state plus local).
Item 3 – Taxable Purchases
Report taxable items you purchased, leased, or rented for business or personal use on which sales tax was not paid to the vendor. This typically includes out-of-state purchases delivered into Texas. Calculate use tax owed on these purchases.
Item 4 – Total Tax Due
Add the tax calculated from Items 2 and 3 together to determine your total gross tax liability for the period.
Item 5 – Timely Filing Discount
If you are filing and paying on time, multiply the total tax due by 0.005 (0.5 percent) to calculate your discount. Enter this amount.
Item 6 – Total Tax Due After Discount
Subtract the timely filing discount from the total tax due. This is the net amount you must remit.
Include any credits (from prior overpayments or specific credit programs), calculate penalty and interest if filing late, sign and date the form, and submit it with payment by the due date. Retain copies of the completed return and supporting documentation for at least four years as required by law.
Errores comunes y cómo evitarlos
Not Filing Zero Returns
One of the most frequent errors is failing to file when there are no sales. Many businesses mistakenly believe that if they had no taxable activity during a period, no return is required. However, Texas law mandates filing a return for every reporting period regardless of whether you have sales. Use TeleFile or submit a paper Form 01-117 with zeros entered to satisfy this requirement and avoid the $50 late filing penalty.
Incorrect Local Tax Rates
Incorrectly calculating local tax rates is another common pitfall. Business owners sometimes use outdated rates or fail to account for overlapping local jurisdictions (city, county, transit authority, special purpose district). Always verify your current combined state and local rate using the Comptroller's Sales Tax Rate Locator before preparing your return, especially if local rates changed during the quarter.
Missing Use Tax
Failing to report use tax on out-of-state purchases represents a significant compliance gap. Many permit holders overlook their obligation to self-assess use tax. Review your accounts payable records for purchases from out-of-state suppliers and report any taxable items in Item 3.
Forgetting Discounts
Forgetting to claim the timely filing discount means unnecessarily overpaying your taxes. If you file and pay on or before the due date, you are entitled to retain 0.5 percent of the tax.
Using the Wrong Form
Using the wrong form can delay processing and create compliance issues. Form 01-117 is only appropriate for single-location businesses. Multi-location businesses must use Form 01-114 with supplements.
Ignoring Amended Returns
Missing amended return procedures when errors are discovered can result in underpayment penalties or lost refunds. Always file corrections promptly.
¿Qué ocurre después de presentar la solicitud?
Calendario de tramitación
Once you submit Form 01-117 and payment, the Texas Comptroller processes your return and updates your account. Electronic filings are processed immediately, while paper returns take several weeks.
If You Paid Correctly
If your return shows a balance due and you paid the full amount on time, your account is considered current and no further action is required.
If You Owe More
When you file an amended return showing additional tax owed, the Comptroller assesses penalties and interest and sends billing notices.
If You Overpaid
If your amended return shows overpayment, the Comptroller reviews your refund request. Processing can take several months.
Enforcement Actions
For delinquent accounts, the Comptroller may take enforcement actions including liens, asset seizure, permit suspension, or audits.
Preguntas frecuentes
Can I file Form 01-117 if I have zero sales for the period?
Yes, and you are legally required to do so. Texas law mandates that permit holders file a return for every reporting period regardless of sales activity.
What happens if I file on time but pay late?
You avoid the $50 filing penalty but still owe 5–10 percent penalties plus interest.
How do I know whether to use Form 01-117 or 01-114?
Use 01-117 for single-location businesses and 01-114 for multi-location or multi-jurisdiction reporting.
Can I change my filing frequency?
Only the Comptroller can approve changes based on your tax history.
What should I do if I lose my permit?
Request a duplicate from the Comptroller. Do not create your own.
Do I need to report tax collected in error?
Yes, but refund the customer first and then file an amended return.
What records must I keep?
Maintain complete records for at least four years, including invoices, receipts, and financial documents.
