I am an out-of-state dealer with no physical presence in Tennessee. When do I have to begin collecting sales and use tax if my sales exceed the $500,000 threshold set out in Sales and Use Tax Rule 1320-05-01-.129(2) after October 1, 2019?

If an out-of-state dealer has no physical presence in Tennessee and meets the $500,000 threshold after October 1, 2019, it is required to register and begin collecting sales and use tax on the first day of the third month following the month in which it meets the threshold. For example, if a dealer meets the threshold on January 15, 2020, the dealer is required to register, collect, and remit sales tax beginning on April 1, 2020, for any sales made on and after April 1, 2020.

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