This article was updated to reflect the repeal of Sales and Use Tax Rule 96 and is effective January 10, 2022.
If a Tennessee supplier sells to an out-of-state dealer personal property or taxable services for resale and drop ships the goods to the out-of-state dealer's Tennessee customer, the Tennessee supplier may obtain the out-state-dealer’s resale certificate issued by another state or a fully completed Streamlined Sales and Use Tax Exemption Certificate that includes the sales tax ID number issued by the other state to make drop shipped sales for resale without tax.
Dealers registered for Tennessee sales and use tax must furnish Tennessee suppliers with a Tennessee resale certificate or a fully completed Streamlined Sales and Use Tax Exemption Certificate that includes a Tennessee sales tax ID number to make purchases for resale exempt from tax.
Out-of-state dealers not required to register for sales and use tax in any state (e.g., home state does not impose sales and use tax) may furnish a Tennessee suppler with a fully completed Streamlined Sales and Use Tax Exemption Certificate that includes a tax ID number issued by its home state for another tax type (e.g., business tax or excise tax) or its federal identification number (FEIN) to make purchases for resale exempt from tax.
Foreign sellers not required to register for sales and use tax in any state in the United States may furnish a Tennessee supplier with a fully completed Streamlined Sales and Use Tax Exemption Certificate that includes a tax ID number issued by its home country (e.g., VAT number) to make purchases for resale exempt from tax.
Reference: Tenn. Code Ann. §§ 67-6-102 and 67-6-409, Tenn. Comp. R. & Regs. 1320-05-01-.29(2), and 1320-05-01-.68(1-3).
Note: This article was updated on January 4, 2022. The previous version of SUT-35 is available here.
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