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Credits Taken and Exported SalesSales Tax
This data is for informational purposes only and is not used in calculating tax due on this report.
Credits Taken
Are you taking credit to reduce taxes due on this return? To proceed to the next page, you must answer Yes or No.
The question pertains to taxable purchases, not taxable sales.
If answering No, proceed to the Bad Debt question.
If answering Yes, enter the amount of tax credit being taken on this return for taxable purchases.
Credits Taken Amount: Enter the amount for all transactions during this report period for which you paid tax in error. It must be in dollars and cents and not less than zero. Do not include prepayment or overpayments from other report periods.
Claim the credit by subtracting the sum of credits from the amount of taxable sales.
Examples of these credits are:
- Tax mistakenly paid to a vendor on exempt manufacturing equipment
- Tax paid on a non-taxable purchase in error
- Tax remitted on customer purchases (“Taxable Sales”) that were returned
- Bookkeeping/reporting errors on previous returns
- Credit for bad debts remitted by this entity (“first party”)
- Credit for bad debts assigned to this entity by another legal entity (“third party“)
Credit for a local taxing jurisdiction cannot be taken unless you have reported that jurisdiction on a previously filed tax return.
Earliest Date of the Tax Paid in Error: Identify all transactions for this report period on which you paid tax when you should not have. Enter the oldest transaction date in this field. Earliest Date must be in mm/dd/yyyy format.
Bad Debt
Are you taking credit on this return for tax paid on bad debts by your legal entity, or assigned to you by another legal entity?
To proceed to the next page, you must answer Yes or No.
Bad debt is any portion of the sales price of a taxable item that a retailer or a private label credit provider cannot collect.
A private label credit provider is a seller who extends credit to a purchaser. An example is a seller that issues a credit card that can only be used at the seller’s store. The bad debt must be taken as a deduction on the federal income tax return during the same or subsequent reporting period.
Third-party bad debt is bad debt that is assigned to you by another entity.
Does this apply to me?
All taxpayers using the Texas Comptroller Webfile system will be required to answer the bad debt question. However, most taxpayers do not claim bad debt, and even fewer receive bad debt assigned by another entity.
If you are in the minority of taxpayers who claim bad debt credits assigned from another entity, you will be required to report additional information, including the amount of bad debt, original taxpayer number and name, and the assigning taxpayer number and name.
If answering No, proceed to the Exported Sales question.
If answering Yes, you will be required to report additional information for first party and third party bad debts on the next page.
Licensed Customs Broker Exported Sales
Did you refund sales tax for this filing period on items exported outside the United States based on a Texas License Customs Broker Export Certificate?
To proceed to the next page, you must answer Yes or No.
If answering No, proceed to the bottom of the page and choose Continue.
If answering Yes, enter the amount refunded for this return for items exported outside the United States.
Exported Sales Amount
Enter the total state and local sales tax refunded for items exported outside the United States from all Texas Licensed Customs Broker Export Certificates.
Add the amount of tax listed on each Licensed Customs Broker Export Certification form for which you refunded the money during this report period. Refunded amount must be in dollars and cents and not less than zero.
For questions regarding credits taken/customs broker refunds, please call 800-252-5555.
This data is for informational purposes only and is not used in calculating tax due on this report.
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