What the Form Is For
Texas Form 01-117, officially called the Texas Sales and Use Tax Return – Short Form, is the standard tax document that businesses with a single location use to report and pay state and local sales and use taxes to the Texas Comptroller of Public Accounts. Think of it as your monthly or quarterly report card to the state, showing how much sales tax you collected from customers and how much use tax you owe on items you purchased for your business without paying tax.
If you hold a Texas sales tax permit, you're required to file this return for every reporting period—even if you had no sales or taxes to report during that time. The form is specifically designed for simpler reporting situations: businesses with one active location that don't need to report local sales taxes for multiple jurisdictions outside their main business address. If your business has multiple locations or you collect taxes for several different local jurisdictions, you'll need the longer Form 01-114 instead.
The "sales" portion tracks taxes you collected from customers on taxable goods and services you sold. The "use" portion reports tax you owe on taxable items you bought for your business (equipment, supplies, inventory held for personal or business use) when the seller didn't charge you Texas sales tax—such as purchases from out-of-state vendors or online sellers who don't collect Texas tax.
When You'd Use This Form
Regular, Late, or Amended Filings
Regular Filing Schedule
After the Texas Comptroller approves your sales tax permit application, you'll receive a letter telling you whether you'll file monthly, quarterly, or yearly. The standard due date is the 20th of the month following your reporting period. Monthly filers report by the 20th of the next month (April sales are due May 20). Quarterly filers report by April 20 (January–March), July 20 (April–June), October 20 (July–September), and January 20 (October–December). Yearly filers report all previous year sales by January 20. Paper returns must be postmarked by the due date, while electronic filers have until the due date to submit.
Late Filing
Life happens, and businesses sometimes miss deadlines. If you file or pay after the due date, Texas assesses automatic penalties. There's a flat $50 late filing penalty for any return filed after the due date. Additionally, if you pay tax late, you'll face graduated penalties: 5 percent if you pay 1–30 days late, or 10 percent if you pay more than 30 days late. Interest charges kick in 61 days after the due date at a rate that varies annually (typically prime rate plus 1 percent). These penalties and interest apply separately, so late filers often face multiple charges. You can request a penalty waiver through the Comptroller's website if you have a legitimate reason for late filing, but interest charges typically cannot be waived.
Amended Returns
Discovering an error on a previously filed return requires filing an amended return—not simply a corrected version. To amend Form 01-117, obtain a copy of your original return (or use a blank form with the correct information), clearly write "Amended Return" across the top, complete all information accurately, and sign and date it. If you underpaid, include payment for the additional tax plus any applicable penalties and interest. Mail everything to the Comptroller's office at 111 E. 17th Street, Austin, TX 78774-0100. If you overpaid, you'll need to follow the separate refund process rather than simply claiming a credit.
Zero Sales Filing
Even with no taxable sales or purchases, you must still file. For periods with zero taxable sales and zero tax due (though you may have total sales), you can use Form 01-117 or file electronically via Webfile or TeleFile. If you have zero total sales, zero taxable sales, and zero tax due, you can also use the longer Form 01-114.
Key Rules or Details for 2017
Permit Holder Obligations
Holding a Texas sales tax permit comes with mandatory responsibilities. You must post your permit visibly at your place of business, collect sales tax on all taxable sales, pay sales and use tax on all taxable purchases, file returns and pay taxes timely for every reporting period, and maintain adequate business records for at least four years.
Electronic Filing Requirements
Your filing method depends on how much tax you paid in the preceding state fiscal year (September 1 – August 31). If you paid less than $10,000, you can choose any method. Higher thresholds require electronic filing and restrict payment methods accordingly.
Tax Rates and Calculations
Texas imposes a 6.25 percent state sales and use tax. Local jurisdictions can add up to 2 percent, making the maximum combined rate 8.25 percent. You're responsible for applying the correct rate.
Discount for Timely Filing
You can claim a 0.5 percent discount for filing on time. Additional prepayment discounts may apply under certain conditions.
Record-Keeping Requirements
Maintain complete records for at least four years, including sales, purchases, and exemption certificates. These are critical during audits.
Step-by-Step (High Level)
Step 1 – Gather Your Records
Compile sales receipts, invoices, exemption documentation, and purchase records.
Step 2 – Calculate Total and Taxable Sales
Determine total gross sales and separate taxable vs. exempt sales.
Step 3 – Calculate Taxable Purchases
Identify purchases where no sales tax was paid and calculate use tax owed.
Step 4 – Complete the Form
Fill out business details and calculate tax due using Items 1–7.
Step 5 – Choose Your Filing Method
File via Webfile, TeleFile, EDI, or paper depending on eligibility.
Step 6 – Submit Payment
Use the appropriate payment method based on your tax bracket.
Step 7 – Keep Confirmation Records
Retain proof of filing and payment for at least four years.
Common Mistakes and How to Avoid Them
Mistake 1 – Not Filing When You Have Zero Sales
File every period, even with no activity.
Mistake 2 – Forgetting to Report Use Tax
Track and report untaxed purchases.
Mistake 3 – Using the Wrong Tax Rate
Use the correct local rate for each transaction.
Mistake 4 – Losing Resale or Exemption Certificates
Keep organized documentation for audits.
Mistake 5 – Missing Deadlines
Understand postmark vs. submission timing.
Mistake 6 – Misunderstanding What's Taxable
Verify taxable services using official sources.
Mistake 7 – Failing to Update Business Information
Keep your details current with the Comptroller.
What Happens After You File
Immediate Processing
Electronic filings process faster than paper returns.
Payment Confirmation and Application
Payments are applied to tax, penalties, then interest.
Account History Updates
Your filing record may affect your future filing frequency.
Potential Audit Selection
Returns may be selected for audit based on various factors.
Refund Processing (If Applicable)
Refunds take 60–90 days and require documentation.
Correspondence and Notices
Expect notifications about rates, deadlines, or account status.
Penalty and Interest Assessments
Late filings trigger automatic penalties and interest.
Record Retention Countdown
Keep all records for at least four years.
FAQs
Can I file Form 01-117 if I have multiple business locations?
No, this form is only for single-location businesses. Multi-location businesses must use other forms.
What's the difference between sales tax and use tax?
Sales tax is collected from customers; use tax is paid on untaxed purchases. Both ensure proper taxation.
If I have no sales, do I still need to file?
Yes, zero returns are still required to avoid penalties.
How do I know which local tax rate to charge?
Use the Comptroller’s rate locator based on delivery location.
What records do I need to keep?
Keep sales, purchase, and exemption records for at least four years.
Can I take a discount on my sales tax payment?
Yes, timely filing and prepayment discounts may apply.
What happens if I discover an error on a filed return?
File an amended return with corrections and any additional payment.
