Tennessee Sales Tax Rules and Regulations - Taxify

Tennessee State Sales Tax

Quick Guide

Contact Information

Website: www.tn.gov
Phone: (615) 253-0600

Sales Tax Rate

Base Rate: 7.000%
With Local Rate: 7.000%-9.250%

Tennessee Sales Tax Facts

Is Tennessee a destination or origin based state? Origin
Is Tennessee a SST Certified State? Yes (Associate Member)
Are zero file returns required in Tennessee? Yes, can be filed by telefile (800) 342-1003
Is shipping taxable in Tennessee? Yes

Tennessee Nexus Information

Triggers for Nexus

Third party distributor (with inventory)
Employee
Spending one to five days at a trade show
Office
Property
Warehousing

Does Amazon Have Warehousing in Tennessee?

Yes

Tennessee Filing Dates

Monthly


January collections – February 20
February collections – March 20
March collections – April 20
April collections – May 20
May collections – June 20
June collections – July 20
July collections – August 20
August collections – September 20
September collections – October 20
October collections – November 20
November collections – December 20
December collections – January 20

Quarterly


Q1 – April 20
Q2 – July 20
Q3 – October 20
Q4 – January 20

Annual


January 20

Other Tennessee Sales Tax Information

Filing Requirements: Sales and use taxpayers are required to file returns and remit payments electronically. If this requirement creates a hardship on any taxpayer, you can request permission to continue to file using paper return forms. The Department can require that a manual-handling fee of $25 accompany any paper return.

What Will You Need: In order to file electronically as required, you will need your Sales & Use Tax Account Number, your username and password, the reportable amounts for the period, if they apply:

  • Gross Sales
  • Exempt Sales
  • Local Sales
  • Single Article Sales
  • Reduced Rates on Energy or Water Sales

You will also need payment information for either an ACH debit transaction or credit card payment.

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Tennessee Sales Tax

 

 

At-A-Glance: Tennessee has a statewide (base) sales and use tax rate of 7% on most items.  Counties also tax up to 2.75% in increments of 0.25%.  Most charge the maximum rate of 2.25%; thus, the most sales are taxed at 9.25%.

SST Certified: Yes (Associate Member)

Sourcing: Origin

State: Tennessee currently imposes a statewide sales and use tax.  Sales tax is imposed on all retail sales, leases and rentals of most goods and taxable services.  Tennessee cities and counties have the option of imposing additional local option sales taxes.  Tennessee Code Section 67-6-702 and Revenue Rule 1320-5-2-.06 provide for maximum local option sales and use taxes on the sales of articles of tangible personal property.

Shipping is generally taxable in this state. It doesn’t matter if the shipping charge is listed separately or if it is included in the price of the item.

Nexus Notes: Sales activities in connection with the use of an in-state post office box may create nexus.

Nexus will be established if a third party distributor is used (as the assumption is inventory is being maintained within the state), however if this is a fulfillment service only, nexus will not be established.

Spending one to five days at a trade show will establish nexus assuming that the activities of the business at the trade show include making sales.

Selling product while in the state for up to three days will establish nexus assuming sales made are not de minimis.

Seminars within the state will not establish nexus assuming no sales are made.

For details on whether hiring an unaffiliated printer will establish nexus see Tenn. Code Ann. §67-6-329(a)(6).

Hiring an unrelated call center will establish nexus assuming that there is an agency relationship with the call center or fulfillment center.

An affiliate that operates a retail store within the state will not necessarily establish nexus assuming that the affiliate’s store does not take orders, perform customer service or distribute advertising materials on behalf of the out-of-state retailer.  However, an affiliate that allows loyalty points to be used in store will establish nexus, as it appears that an agency relationship exists with the in-state affiliate.

An in-state store that sells gift cards will not establish nexus assuming the remote seller has no physical presence in the state or an agency relationship with the in-state stores.

A sale that involves music video downloads or free canned software for download is taxable, but the activity described would not create nexus.

Inspection visits as part of a franchise agreement will not establish nexus, however it is likely that the franchisor will have other transactions with the franchisee that will create nexus for the franchisor.

Website: Tennessee Department of Revenue

Contact: (615) 253-0600