Are organizations exempt from the sales tax liable for tax on sales?

Yes. Non-profit organizations engaged in making sales of taxable products or services in Tennessee must register to collect and remit sales tax on their sales in this state to consumers. 

The tax exemption provided under state law for non-profits applies to products and services that the non-profit organization purchases for its use and consumption. The exemption does not apply to sales tax that is required to be collected and remitted on sales in Tennessee. The non-profit organization should purchase products that it intends to resell without the payment of tax by using a resale certificate.

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