If an out-of-state dealer has no physical presence in Tennessee and meets the $500,000 threshold after July 31, 2019 and before October 1, 2020, or the $100,000 threshold on or after October 1, 2020, 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. Therefore, if you exceed the threshold in August or September, you are required to begin collecting tax in November or December, respectively.
Note: This article was updated on December 22, 2021 for clarification purposes. The previous version of RS-8 is available here.
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