I’ve only been in business since July 1, 2016. How does the twelve-month period apply to me as an out-of-state seller with no physical presence in Tennessee? Will there be a proration of the $500,000 threshold for the six months I’ve been in business?

There is no proration of the $500,000 threshold. If you do not have a physical presence in Tennessee and your sales to Tennessee customers do not exceed $500,000, you are not required to register for the Tennessee sales and use tax by March 1, 2017. If you meet the $500,000 threshold after March 1, 2017, you must register with the Department and begin to collect and remit Tennessee sales and use tax by the first day of the third calendar month following the month in which you meet the threshold.  For example, if you meet the $500,000 threshold on August 15, 2017, you are required to register, collect, and remit sales tax beginning on November 1, 2017.

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