I provide repair services. If a customer ships property into Tennessee for repair, and I ship the property back to the customer when the repair is completed, must I collect Tennessee sales tax? Is this an exempt transaction in interstate commerce? Yes, sales tax must be collected. September 02, 2015 19:47 Related articles What services are subject to sales and use tax in Tennessee? What qualifies for industrial machinery exemption? What are the tax consequences of a drop shipment? When may a business use a resale certificate? What legislation was passed in 2015 that affects sales & use tax?