What the Form Is For
Form 01-117 is the simplified version of the Texas Sales and Use Tax Return used by businesses with a single location to report and pay state and local sales and use taxes to the Texas Comptroller of Public Accounts. This official tax document serves two primary purposes: reporting sales tax collected from customers on taxable goods and services, and reporting use tax owed on taxable items purchased for business or personal use where Texas sales tax was not paid at the time of purchase.
The short form is specifically designed for businesses operating from one physical location in Texas that do not need to allocate local sales taxes to multiple jurisdictions. If your business has multiple outlets or reports taxes to various cities, counties, transit authorities, or special purpose districts beyond your single business location, you must use the long form (Form 01-114) instead. Texas imposes a base state sales and use tax rate of 6.25 percent, with local jurisdictions authorized to add up to 2 percent, creating a maximum combined rate of 8.25 percent.
All Texas sales tax permit holders must file returns regularly—even during periods with zero sales or tax due—according to their assigned filing frequency. The Comptroller notifies businesses of their filing schedule (monthly, quarterly, or yearly) after approving their sales tax permit application. Filing this return satisfies your legal obligation as a permit holder to report taxable activity and remit collected taxes to the state.
When You’d Use It (Late or Amended Returns)
You must file Form 01-117 by the statutory due date for your reporting period.
Filing Deadlines
- Monthly filers: Due on the 20th of the following month
- Quarterly filers:
- April 20 (Jan–Mar)
- July 20 (Apr–Jun)
- October 20 (Jul–Sep)
- January 20 (Oct–Dec)
- Yearly filers: January 20
If a due date falls on a weekend or legal holiday, the next business day applies.
Late Filing Penalties
- $50 penalty for any late return
- 5% penalty if 1–30 days late
- 10% penalty if over 30 days late
- Interest begins after 60 days (prime rate + 1%)
Amended Returns
To correct errors:
- Use a copy of the original return or complete a new one
- Write “Amended Return” at the top
- Sign and date the form
- Mail to:
- 111 E. 17th Street
- Austin, Texas 78774-0100
- Underpayment: Include tax + penalties + interest
- Overpayment: Triggers refund process
Key Rules or Details for 2023
Filing Requirement
You must file even if:
- No sales occurred
- No tax is due
Timely Filing Discounts
- 0.5% discount if filed and paid on time
- Additional 1.25% prepayment discount if:
- Paid by the 15th
- At least 90% of current tax or 100% of prior year period
Electronic Filing Rules
- $50,000+ paid last fiscal year → must file electronically
- $500,000+ → must also pay electronically
- Webfile available to all taxpayers
Recordkeeping Requirements
- Keep records for at least 4 years
- Required documentation:
- Sales receipts
- Purchase invoices
- Exemption/resale certificates
Step-by-Step (High Level)
Basic Information
- Enter 11-digit Texas taxpayer number
- Enter reporting period
Item Breakdown
Item 1 – Total Texas Sales
- Report all sales (taxable + exempt)
- Round to whole dollars
- Do not include tax collected
Item 2 – Taxable Sales
- Report taxable sales only
- Exclude exempt/resale transactions
- Multiply by combined tax rate
Item 3 – Taxable Purchases
- Report untaxed purchases
- Examples:
- Out-of-state purchases
- Online purchases
- Multiply by tax rate
Item 4 – Combined Taxable Amount
- Add Items 2 + 3
- Multiply by tax rate
Item 5 – Deduct Timely Filing Discount
- 0.5% if filed on time
Item 6 – Tax Due
- Subtract discount
- Add penalties/interest if late
Final Step
- Sign and certify accuracy
- Include contact number
- Mail with payment if applicable
Common Mistakes and How to Avoid Them
Missing Taxable Purchases
- Many forget Item 3
- Review all purchase invoices
Incorrect Tax Rate
- Rates vary by location
- Always verify using Comptroller tool
Improper Zero Returns
- Don’t leave forms blank
- Clearly indicate “no sales”
Incorrect Discount Claims
- Only valid if filed on time
- Late filings lose eligibility
Outdated Business Information
- Update address with Comptroller
- Prevent missed notices or penalties
What Happens After You File
Processing
- Electronic filing → immediate confirmation
- Paper filing → 2–4 weeks
Compliance Monitoring
- Filing history reviewed
- Frequency may be adjusted
Underpayment Consequences
- Billing notices issued
- Potential actions:
- Tax liens
- Asset seizure
- Permit suspension
Audits
- Typically every 4 years
- Based on:
- Compliance history
- Reported data
Refunds
- Requires amended return
- May be offset by existing liabilities
FAQs
Can I file Form 01-117 even if I had sales but no taxes are due?
Yes. Report total sales and enter zero for taxable sales and purchases. Filing is still required.
What if my business operates in multiple cities but from a single location?
If you allocate taxes outside your location, you must use the long form (01-114).
How do I know what tax rate to use?
Use the Comptroller’s Sales Tax Rate Locator. Rates vary by exact address and change quarterly.
Is there any way to avoid penalties if I cannot pay on time?
No automatic extensions exist. You may request a payment plan, but penalties and interest still apply.
Do I need a new permit if ownership changes?
Yes. Permits are non-transferable. A new owner must apply for a new permit.
Can I get help understanding taxable items?
Yes. Use Comptroller resources, publications, or call 800-252-5555 for assistance.
What should I do if I receive an estimated billing?
File the correct return immediately. The Comptroller will adjust the amount based on actual data.
