Out-of-State Wineries Must Collect Sales Tax from Texas Customers

Jan 4th, 2021

Out-of-state wineries can sell and ship wine to Texas customers, including to customers who live in dry counties where alcohol sales are prohibited. To sell in Texas, out-of-state wineries must obtain (1) Texas sales and use tax permits from the Comptroller's office, and (2) out-of-state winery direct shipper's permits from the Texas Alcoholic Beverage Commission.

Out-of-state wineries with Texas sales and use tax permits must collect, report, and remit tax to the Comptroller's office. The wineries must collect the 6.25% state sales tax along with up to 2% local sales tax based on where the order is shipped or delivered, or the single local use tax rate.

The safe harbor provision does not apply to out-of-state wineries. The safe harbor provision exempts remote sellers with total Texas revenue of less than $500,000 in the preceding 12 calendar months from the requirement of obtaining a tax permit and collecting sales and use tax.