SUT-115 - Services – Services Subject to Sales and Use Tax

Services specified in the law that are subject to sales tax in Tennessee include:

  • Rental of rooms, lodging, or other accommodations for less than 90 consecutive days by people in the business of providing overnight lodging services
  • Providing parking or storing of motor vehicles in a parking garage or parking lot
  • Providing repair of tangible personal property and computer software, including situations where no new parts are provided or when the customer furnishes the parts
  • Laundering or cleaning any kind of tangible personal property
  • Installing tangible personal property that remains tangible property after installation, including stand-alone installation services where installer did not sell the property installed (the installation of tangible property that becomes a part of realty when installed is not taxable)
  • Installation of computer software
  • Enriching of uranium materials or compounds
  • Providing short-term rental of space to a dealer for making sales (e.g., booth rental)
  • Furnishing intrastate, interstate and international telecommunications services
  • Sales of prepaid calling cards, prepaid phones and long distance calling cards
  • Ancillary services (i.e., services associated with telecommunications, such as call waiting & forwarding, caller ID, voice mail and conference bridging)
  • Video programming services (i.e., cable and wireless cable and broadband television services)
  • Direct-to-home satellite television services

Services that are not specifically enumerated in the law may be subject to sales tax where the charges for the services (even if separately itemized) are considered part of the sales price of a taxable good or service.  Delivery charges, labor and service cost, and services necessary to complete the sale furnished by a seller of a taxable good or service are part of the sales price of the taxable good or service.          

Reference: Tenn. Code Ann. § 67-6-205.

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