Tennessee State Sales Tax Online Registration

Any business that sells goods or taxable services within the state of Tennessee to customers located in Tennessee is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in Tennessee must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.

Do you need to get a Sales Tax certificate in the state of Tennessee?

You may need a Sales Tax Certificate if any of the following apply your business:

  • You have a Corporate presence within the state of Tennessee
  • You sell or ship products to a buyer in Tennessee
  • You have ownership of real or personal property
  • Your business rents or leases tangible personal property
  • You have employees physically present in Tennessee (including independent contractors, sales persons, representatives, or agents)
  • Your business has economic presence (businesses who make over $500,000 in sales in the prior 12 months)
  • Your business has taxable services in the state of Tennessee

What constitutes taxable services in the state of Tennessee?

The majority of service businesses are not taxable in Tennessee. The exceptions would be if your business fabricates or manufactures, installs, or repairs a good or product

Why do you need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Tennessee?

As a wholesale company conducting business in the state of Tennessee, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.

If you an online seller, do you need to collect sales tax on shipping and handling of merchandise?

Shipping and handling charges are taxable (on taxable items ) if you include it in the purchase price of the item being sold

Is there sales tax on drop shipments in the state of Tennessee?

A drop shipment is where a seller (most times out of state ) sells a product which is then delivered to a consumer by a third party shipper. In most instances, drop shipments in Tennessee are exempt and therefor are not required to have sales tax added

Are there any exemptions to taxable items sold?

Certain specific medical supplies, medical devices, raw materials and machinery, newspapers and magazines, and pollution control equipment are tax exempt

Register for a Tennessee sales/use tax number

Tennessee state, county, city, & municipal tax rate table

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