Are purchases made with a Red Cross voucher or debit card exempt from Texas sales and use tax?
Yes, customers are not required to pay Texas state and local sales taxes on taxable items purchased with a Red Cross voucher or debit card. Retailers must keep documentation that the items were purchased with a Red Cross debit card or voucher. The documentation may be either a copy of a voucher or a copy of the receipt issued to the purchaser. The receipt copy should be clearly marked “Red Cross” and should be signed by the purchaser. For purchases made with vouchers, retailers should show the amount of the Red Cross voucher on the invoice, deduct that amount before computing the sales tax, and keep a copy of the voucher to substantiate the sale to the Red Cross on behalf of the individual. Exemption certificates are not required on these purchases.
