SUT-37- Repair Services on Property Shipped into Tennessee for Repair

Effective July 1, 2024, the Tennessee Works Tax Act amends the sourcing of repair services.

If the service is performed in Tennessee and the serviced property is then shipped or delivered by the seller to the purchaser outside Tennessee, the sale is no longer sourced to Tennessee and should be reported as an exempt interstate sale.

For a thorough discussion of the new sourcing provisions, please see Important Notice 24-08 and the Department’s Sales and Use Tax Manual.

Note: This Article was updated on June 12, 2024. The previous version of SUT-37 is available here.