Establish the tax account correctly
The Texas Comptroller says sellers can apply for a Texas sales and use tax permit online or by paper application. Permit holders must post the permit at the place of business, collect tax on taxable sales, pay tax on taxable purchases, file and pay on time, and keep adequate records. Returns are required even for a filing period with no taxable sales or purchases.
Food, beverages, delivery, service charges, tips, discounts, catering, merchandise, and event sales can be treated differently depending on facts. Use the Comptroller's current restaurant guidance and a qualified tax adviser rather than applying one rule to every transaction.
Configure location-aware tax
The Comptroller states that Texas state sales and use tax is 6.25 percent and applicable local tax can bring the combined rate up to 8.25 percent. Local sourcing can depend on where the sale is consummated and where an item is delivered. A mobile operation selling at different addresses should not leave one local rate in the POS without review.
- Create a POS location or tax profile for each recurring site when advised.
- Use the Comptroller's current rate locator for the specific address.
- Document how delivery, catering, preorder, and event transactions are sourced.
- Reconcile collected tax to taxable sales by location.
- Do not treat collected sales tax as operating revenue.
Design POS for operational control
| POS control | Purpose |
|---|---|
| Exact item names and modifiers | Consistent tickets, costing, allergen escalation, and reporting |
| Sold-out control | Stops sales immediately when product or equipment is unavailable |
| Tax by location | Supports correct collection and reporting |
| Discount and comp permissions | Prevents undocumented giveaways |
| Refund and void reason | Supports service recovery and fraud review |
| Employee login | Creates accountability without shared passwords |
| Offline procedure | Defines approved transactions, limits, receipt, and later synchronization |
| Close report | Reconciles sales, tax, tips, cash, card, refunds, comps, and deposits |
Control cash in a small space
Limit starting cash, assign the drawer, count out of guest view, use two-person verification when practical, and move excess cash according to a written procedure. Do not leave deposits, tips, or personal money mixed with operating cash. Protect employees by avoiding public discussion of cash volume or deposit timing.
Keep records that explain the business
The Comptroller's permit FAQ says records may be audited and generally must be kept for at least four years. Other legal, insurance, employment, contract, or food-safety records may have different retention requirements. Adopt a schedule reviewed by qualified advisers.
| Record family | Examples |
|---|---|
| Sales and tax | POS detail, location, returns, payments, exemptions, marketplace reports |
| Purchasing | Invoices, supplier, product, tax paid, credits, labels |
| Payroll and labor | Time, role, pay, reimbursement, contractor review |
| Events and contracts | Proposal, agreement, deposit, changes, settlement, cancellation |
| Vehicle and equipment | Purchase, financing, depreciation, mileage, fuel, maintenance, repair |
| Food safety | Inspections, temperatures, employee policy, training, corrective actions |
| Insurance and incidents | Policies, certificates, claims, photographs, factual reports |
Protect guest and employee data
Collect only what is needed. Do not place payment-card data, passwords, medical details, government IDs, or private employee records into general spreadsheets or the site's free Tools. Use approved payment systems, role-based access, strong unique passwords, and multifactor authentication where available.
Sources and verification
Use the current source, effective date, and controlling authority before making an operational decision.
- Texas Sales and Use Tax Permit FAQ — Permit application, obligations, places of business, filing, and record-retention guidance.
- Local Sales and Use Tax Collection — Texas local tax rates, location, delivery, and sourcing guidance.
- Texas Food Truck Guide sources Official source references for the Food Truck Guide.