What the Form Is For
The Texas Sales and Use Tax Return – Short Form (Form 01-117) is a simplified tax reporting document that eligible businesses use to report and pay their state and local sales and use taxes to the Texas Comptroller of Public Accounts. This streamlined version of the standard sales tax return is designed for businesses with straightforward tax situations that don't require the more complex long form (Form 01-114).
The short form allows permitted sellers to report their total sales, taxable sales, and calculate the tax due for a specific reporting period—whether monthly, quarterly, or yearly. When you file this form, you're fulfilling your legal obligation to collect and remit sales taxes on behalf of the State of Texas and any applicable local taxing jurisdictions where your business operates. The form also provides a mechanism for businesses to claim the timely filing discount if they meet the requirements.
Texas imposes a 6.25 percent state sales and use tax on retail sales, leases, and rentals of most goods and taxable services. Local jurisdictions can add up to 2 percent, bringing the maximum combined rate to 8.25 percent. Form 01-117 simplifies the reporting process for businesses that don't need to allocate taxes across multiple locations or jurisdictions.
When You’d Use It
Standard Filing Schedule
You'll use Form 01-117 according to the filing frequency assigned by the Texas Comptroller when your sales tax permit was approved. Monthly filers must submit returns by the 20th of the month following the reporting period (for example, the April sales tax report is due May 20). Quarterly filers have deadlines on April 20, July 20, October 20, and January 20 for the preceding three-month periods. Yearly filers must file by January 20 for the previous calendar year. You must file a return for every assigned period, even if you had no taxable sales during that time.
Late Filing Situations
If you've missed a filing deadline, you still need to file Form 01-117 as soon as possible to minimize penalties and interest. The Comptroller's office will send estimated billings for unfiled periods, but you should submit the actual return with accurate sales data rather than accepting the estimate. Late filing triggers a $50 penalty per report, plus additional penalties on any unpaid tax: 5 percent if paid 1–30 days late, or 10 percent if paid more than 30 days late. Interest begins accruing 61 days after the due date.
Amended Returns
You can file an amended Form 01-117 to correct errors on a previously submitted return. To amend, either make corrections on a copy of your original return or complete a new form with the correct information. Write "AMENDED RETURN" prominently at the top of the form. Amended returns can be filed electronically via Webfile or on paper. If your amendment reduces the tax due from your original filing, you may be eligible for a refund or credit, though additional documentation might be requested to validate your claim.
Key Rules or Details for 2019
Who Qualifies for the Short Form
You may use Form 01-117 only if your business meets all of the following criteria:
- You have a single location in Texas
- You report applicable local sales and use taxes only for your business location
- You’re not reporting out-of-state sales
- You don’t need to claim credits beyond the timely filing discount
If any of these conditions don’t apply, you must file the long form (Form 01-114).
Tax Rate Application
The tax rate you apply depends on your business location. Use the Comptroller's Sales Tax Rate Locator tool to determine your combined rate. The state rate is always 6.25 percent, with local jurisdictions potentially adding their rates.
If your local tax rate changes during a yearly filing period, use a rate change worksheet to properly allocate sales.
Filing and Payment Requirements
Your filing method depends on how much tax you paid in the prior fiscal year:
- Less than $10,000 → Paper, Webfile, EDI, or TeleFile
- $10,000–$49,999 → Same options, but no check payments
- $50,000+ → Must file electronically
- $500,000+ → Must use TEXNET
Timely Filing Discount
Permitted sellers who file and pay on time can claim a 0.5 percent discount. Monthly and quarterly filers may also qualify for a 1.25 percent prepayment discount if they meet early payment thresholds.
Step-by-Step (High Level)
Gather Your Records
Compile your total sales, taxable sales, taxpayer number, and reporting period details.
Complete the Form Header
Enter your business name, taxpayer ID, filing period, and filing type. Mark "AMENDED RETURN" if applicable.
Report Sales and Calculate Tax
- Line 1 → Total sales
- Line 2 → Taxable sales
- Line 3 → Tax rate
Calculate tax due and subtract any applicable discount.
Submit Payment
Use an approved method:
- Webfile (EFT)
- Credit card
- TEXNET
- Check (if eligible)
File the Return
Submit via:
- Webfile
- EDI
Keep records for at least four years.
Common Mistakes and How to Avoid Them
Using the Wrong Form
If your business doesn’t meet short form requirements, use the long form to avoid delays or corrections.
Applying Incorrect Tax Rates
Always verify current rates using the Comptroller’s tool. Rates can change quarterly.
Missing the Timely Filing Discount
Only claim the discount if you file and pay in full by the deadline.
Failing to File Zero Returns
You must file even with zero sales. Failure results in a $50 penalty.
Incorrectly Reporting Exempt Sales
Maintain proper documentation for exemptions such as resale or nonprofit sales.
What Happens After You File
Confirmation and Processing
Electronic filing provides instant confirmation. Mailed returns take longer to process.
Refunds and Credits
Overpayments may be refunded or credited. Processing can take several weeks.
Notices and Audits
The Comptroller may request clarification or conduct audits covering 3–4 years.
Ongoing Compliance
You must continue filing every assigned period. Notify the Comptroller of business changes.
Penalties and Collections
Failure to file or pay can lead to:
- Penalties
- Interest
- Liens
- Permit suspension
- Asset seizure
FAQs
What’s the difference between the short form and the long form?
The short form is for single-location businesses reporting local taxes only. The long form is required for multiple locations, multiple jurisdictions, or advanced credits. Eligibility determines usage—not preference.
Can I file electronically if I qualify for paper filing?
Yes. Webfile is available to all businesses and offers faster processing, confirmation, and reduced errors.
What if I collected tax on exempt sales?
You must refund the customer first. Then recover the amount via credit, amendment, or refund request with proper documentation.
How does the prepayment discount work?
You can earn an additional 1.25 percent discount by prepaying at least 90 percent of your liability early, then filing normally.
What records should I keep?
Maintain invoices, receipts, exemption certificates, and returns for at least four years.
What should I do if I miss a deadline?
File immediately. Late penalties apply, but filing reduces long-term costs and avoids inflated estimated billings.
Do I need to file a final return if I close my business?
Yes. File a final return covering all sales and officially close your permit to avoid future liability.
Additional Resources
- Texas Comptroller Sales and Use Tax Main Page
- Form 01-117 and Sales Tax Forms
- Filing Requirements and Payment Methods
