RS-1 - Sales Threshold for Out-of-State Dealers

Out-of-state dealers with no physical presence in Tennessee who make $100,000 or more in sales to Tennessee customers must register and collect Tennessee sales and use tax. The $100,000 threshold includes all retail sales made by the out-of-state dealer, including exempt sales but does not include sales for resale.

The sales threshold was set at $500,000 beginning October 1, 2019. Out-of-state dealers should use $500,000 threshold for periods between October 1, 2019 and September 30, 2020. Out-of-state dealers should use $100,000 threshold beginning October 1, 2020.

Reference: Tenn. Code Ann. § 67-6-524.

Note: This article was updated on December 22, 2021 for clarification purposes. The previous version of RS-1 is available here.

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