What are the specific tax obligations of e-commerce businesses?

In Texas, e-commerce businesses have a number of specific tax obligations. These taxes include sales tax, business franchise tax, use tax, and other taxes that may apply. Sales tax is imposed on the sale of items sold within Texas. The rate of sales tax varies depending on the jurisdiction where the sale occurs. Businesses must register with the Texas Comptroller of Public Accounts in order to collect, report, and remit sales tax. Business franchise tax is imposed on businesses with taxable margin. This tax applies to businesses with either their base in Texas or with physical presence in Texas. The rate of franchise tax is based on the type of business entity and the amount of taxable margin. Use tax is imposed on the use, storage, or consumption of items purchased outside of Texas. This tax applies to items that would have been subject to sales tax if purchased within the state. Use tax is also payable on items that the purchaser has failed to pay the appropriate tax. Other taxes may apply, depending on the type of business and the type of goods or services being sold. Businesses should contact the Texas Comptroller of Public Accounts for more information about their specific tax obligations.

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