I am an out-of-state dealer with no physical presence in Tennessee. How do I apply the $500,000 threshold set out in Sales and Use Tax Rule 1320-05-01-.129(2)?

Sales and Use Tax Rule 1320-05-01-.129(2) provides that out-of-state dealers who have no physical presence in Tennessee but make sales exceeding $500,000 to consumers in Tennessee during the previous 12-month period must register with the Department and begin collecting and remitting Tennessee sales and use tax.

To apply this threshold, you include all retail sales that occurred during the previous 12 months, regardless of where you are in the year.  This includes retail sales to individuals, businesses, organizations, and any other purchaser, whether the sale is taxable or exempt.  However, you should exclude sales to another dealer for resale. 

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