As a supplier, I made a sale to a reseller in another state and am shipping the product to the reseller's customer in Tennessee. Can I accept the reseller's home state resale certificate for tax exemption purposes?

This is a taxable transaction for Tennessee sales tax. The transfer of ownership and possession takes place in Tennessee. The out-of-state reseller’s home state certificate cannot be accepted by itself for sales tax exemption.

Sales tax exemption is allowed for Tennessee dealers purchasing items for resale or Tennessee governments or exempt nonprofit groups purchasing items for their use and consumption. A copy of the resale or exemption certificate, as appropriate, along with a copy of the reseller’s home state resale certificate is needed to document the sales tax exemption.

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