Bookkeeping and tax services for small businesses in The Woodlands and Greater Houston area.

Call or Text: (515) 314-1416

What sales tax issues should Texas Shopify and Amazon sellers watch for?

The biggest distinction Texas e-commerce sellers need to understand is how marketplace facilitator laws work. When you sell through Amazon, the marketplace collects and remits Texas sales tax for you. Amazon handles the compliance on those transactions. But when you sell directly through your own Shopify store, you’re responsible for collecting Texas sales tax from customers and filing returns with the Texas Comptroller.

This creates two different sales tax situations within the same business. Your Amazon sales are handled by Amazon. Your direct Shopify sales require you to register for a Texas sales tax permit, collect the correct rate based on where your customer is located, and file periodic returns. Many sellers don’t realize they need to handle these separately.

The reconciliation challenge is where most e-commerce bookkeeping problems start. Amazon sends payouts that combine your sales revenue, minus fees, minus refunds, plus or minus various adjustments. The sales tax Amazon collected doesn’t come to you at all. It goes directly to the state. But when you’re reconciling your books, you need to separate what was actually revenue from what were fees and what was tax.

If you record your Amazon payout deposit as revenue without breaking it out, your books will be wrong. You’ll understate revenue because the payout is net of fees, and you won’t have a clear picture of what your actual selling expenses are. This matters for understanding your margins and for tax preparation.

Refunds add another layer. When a customer gets a refund on Amazon, the sales tax is also refunded. Amazon handles this, but you need to make sure your revenue records reflect the net sales correctly. On Shopify, when you refund a customer, you need to track that the sales tax was also refunded so your sales tax return is accurate.

For Texas specifically, you should also know that some items are taxable and some aren’t. Clothing is generally taxable in Texas. Food products sold through e-commerce can get complicated depending on what’s being sold. If you’re selling across multiple categories, the tax treatment might vary by product.

Multi-state sales add complexity if you’re shipping to customers outside Texas. Each state has its own sales tax rules and thresholds for when you need to register and collect tax. Many e-commerce sellers have nexus in multiple states and don’t realize it until they get a notice.

Keeping your records clean requires separating marketplace sales from direct sales, tracking fees as expenses rather than just recording net payouts, and reconciling both to what actually hit your bank account. If you’ve fallen behind on any of this, bookkeeping cleanup and catch-up services can help get your records straight before tax time so you have accurate reporting and understand what your business is actually making.

Greater Houston's Small Business Bookkeeping Partner

The Next Step:
A Quick Conversation

Tell us about your business and what you need help with. We'll listen, ask a few questions, and give you a straightforward quote.

More Questions

How do I know if my nonprofit needs outside bookkeeping help in The Woodlands or Montgomery County?

Signs include approaching Form 990 deadlines without confidence, board questions you can't answer quickly, grant reporting requirements, or an upcoming audit. If your books take time away from your mission, it's probably time for help.

Read answer

How often should a small business reconcile bank and credit card accounts?

Monthly is the standard for most small businesses. Bank feeds pull transactions automatically but don't catch duplicates, uncategorized items, or missing entries. Monthly reconciliation is the checkpoint that keeps your books accurate.

Read answer

What cash flow forecast should a business owner review before making a large purchase?

A cash flow forecast shows whether you'll have money when you need it, not just whether you're profitable. Review projected receipts, payroll, vendor bills, tax payments, loan payments, and owner draws before committing to a large purchase.

Read answer

How can a contractor know which jobs are actually profitable?

Profitability by job requires tracking from estimate through closeout. You need the original bid, change orders, all direct costs coded to the job, overhead allocation, and a closeout report run while details are fresh.

Read answer

How should e-commerce businesses track inventory across multiple platforms?

Use consistent SKUs across all platforms, track purchase costs at the item level, and reconcile platform reports to your accounting software monthly. Inventory management software becomes necessary once volume justifies the investment.

Read answer

What should a Texas restaurant track for sales tax and mixed beverage tax?

Texas restaurants track regular sales tax on food plus two separate mixed beverage taxes on alcohol. Mixed beverage sales tax is collected from customers while gross receipts tax comes from your revenue.

Read answer

SRC Bookkeeping & Tax is a Woodlands-based bookkeeping and tax practice serving small businesses across Greater Houston. Founded by Shane Christenson with experience in banking, public accounting, and nonprofit finance. We help business owners keep their records organized and their taxes handled.

© 2026 SRC Bookkeeping & Tax, LLC