This article has been updated to reflect the repeal of Sales and Use Tax Rule 96 and is effective January 10, 2022.
The sales tax resale exemption is allowed for dealers purchasing items or taxable services in Tennessee that they normally resell. A dealer making purchases for resale must provide its suppliers with a resale certificate to make purchases for resale without paying tax. An out-of-state dealer may provide its resale certificate with the sales tax ID number issued by another state, or a fully completed Streamlined Sales Tax Exemption Certificate including the sales tax ID number issued by the other state, to make purchases for resale in Tennessee.
Generally, Tennessee does not accept a Streamlined Central Registration ID issued by the Streamlined Sales Tax Governing Board or other non-state entity. However, dealers located in a state that uses the Streamlined Central Registration ID in lieu of a state issued number may use their Streamlined Central Registration ID. All other dealers must use the state issued number.
Out-of-state dealers that are 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 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 that are for resale without paying tax.
For foreign dealers that are not registered in any state in the United States, the foreign dealer must provide a fully completed Streamlined Sales Tax Exemption Certificate with a tax ID number issued by its home country to claim it is entitled to purchase such products for resale without paying 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 6, 2022. The previous version of SUT-33 is available here.
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