What Texas Form 01-114 Is For
Form 01-114 serves as your official report to Texas about all sales, rentals, leases, and taxable services your business conducted during a specific reporting period. The form calculates the total sales and use tax you owe, including both the state's 6.25 percent base rate and any applicable local taxes that can bring the combined rate up to 8.25 percent. Every business holding an active Texas sales tax permit must file this return—even if you had zero sales during the period—to maintain compliance and avoid penalties.
The form requires you to report total sales, identify which sales were taxable, calculate tax due, and account for any credits or adjustments. It also includes spaces to report sales from multiple business locations if you operate more than one outlet under the same taxpayer identification number. The Comptroller's office uses this information to determine your tax liability, verify compliance, and distribute local tax revenues to cities, counties, and special districts.
When You’d Use Texas Form 01-114
Regular Filing Schedule
Most businesses file Form 01-114 on a regular schedule—either monthly or quarterly—as assigned by the Comptroller's office when you receive your permit.
- Monthly filers must submit returns by the 20th of the month following the reporting period.
- Quarterly filers report in April, July, October, and January, covering the previous three-month period.
Late Returns
You must file a late return if you miss your deadline.
- $50 late filing penalty
- 5 percent penalty if tax is paid one to thirty days late
- 10 percent penalty if paid over thirty days late
- Interest begins on day 61 after the due date
Amended Returns
Amended returns are necessary when you discover errors after filing your original return.
- Mark "Amended Return" at the top
- Include corrected figures
- Pay additional tax if underpaid
- Request refund or apply credit if overpaid
Key Rules or Details for 2018
Filing Requirements
- You must file even with zero sales
- Electronic filing through Webfile is encouraged (and required for some taxpayers)
Discounts and Incentives
- 0.5 percent timely filing discount
- Up to 1.75 percent total discount with prepayment
When the Long Form Is Required
Use Form 01-114 instead of Form 01-117 if:
- You operate multiple locations
- You claim credits
- You report use tax
- Your situation is complex
Signature and Validity
- Must be signed by an authorized individual
- Unsigned returns are invalid
Recordkeeping
- Maintain records for at least four years
- Keep invoices, exemption certificates, and supporting documentation
Step-by-Step (High Level)
Step 1: Gather Records
Collect:
- Gross receipts
- Exempt sales documentation
- Use tax purchases
Step 2: Calculate Sales
- Determine total sales across all outlets
- Separate taxable vs exempt sales
Step 3: Complete the Form
- Enter total sales in Item 1
- Report taxable sales in Item 2 by tax rate
- Apply correct local rates
Step 4: Calculate Tax
- Multiply taxable sales by combined rates
- Include any credits using Form 01-148
Step 5: Report Multiple Locations
- Use Form 01-115 for each additional outlet
Step 6: Finalize the Return
- Verify calculations
- Apply discounts
- Determine net tax due
- Sign and date
Step 7: Submit the Return
- File via Webfile, TEXNET, or mail
- Ensure timely payment submission
Common Mistakes and How to Avoid Them
Misreporting Sales
- Do not confuse total sales with taxable sales
Incorrect Tax Rates
- Verify rates using the Sales Tax Rate Locator
Missing Zero Returns
- File even when no sales occurred
Skipping Discounts
- Always apply eligible filing discounts
Ignoring Use Tax
- Report out-of-state purchases properly
Calculation Errors
- Double-check math or use Webfile automation
Missing Documentation
- Attach required schedules for credits and deductions
What Happens After You File
Processing Timeline
- Electronic filings: a few business days
- Paper filings: several weeks
Account Status
- View via the eSystems portal
Overpayments
- Request refund or apply credit to future returns
Notices and Corrections
- Respond quickly to any Comptroller notices
Audits
- Typically occur on a four-year cycle
- Maintain organized records for verification
FAQs
Can I file Form 01-114 if I'm normally a short form filer?
Yes, you may always file the long form even if you qualify for Form 01-117. The long form is required when claiming credits, reporting multiple outlets, or handling complex transactions. You cannot substitute the short form when the long form is required.
What if I closed my business but still have an active permit?
You must file a final return for your last reporting period, then formally close your sales tax permit through the Comptroller's business location closure form. Return your permit certificate to the Comptroller's office for cancellation. Failing to close your permit means you'll continue receiving filing requirements and may face penalties for non-filing.
How do I handle sales in areas with different local tax rates?
Report sales separately by tax rate on Form 01-114. Enter each amount under the appropriate rate category. Always verify rates using the Comptroller's rate locator tool.
What's the difference between sales tax and use tax on this form?
Sales tax applies to transactions where you collected tax from customers. Use tax applies to purchases where tax was not collected. Both must be reported on Form 01-114.
Can I request a payment plan if I can't pay the full amount?
The Comptroller considers payment plans case-by-case. Contact a field office to discuss options. Penalties and interest will continue accruing.
Do I need to include exemption certificates with my return?
No. Keep exemption certificates in your records. They may be requested during an audit.
How do I correct an error discovered months after filing?
File an amended Form 01-114 marked "Amended Return." Include corrected data and pay any additional tax owed. Submit the form to the Comptroller's office.
