SUT-78 - Nonprofit Exemption - Nonprofit Organizations Making Sales of Taxable Products or Services

Nonprofit organizations engaged in making sales of taxable products or services in Tennessee must register to collect and remit sales tax on their sales in this state to consumers.

The tax exemption provided under state law for nonprofits applies to products and services that the nonprofit organization purchases for its use and consumption. The exemption does not apply to sales tax that is required to be collected and remitted on sales in Tennessee. The nonprofit organization should purchase products that it intends to resell without the payment of tax by using a resale certificate.

Reference: Tenn. Code Ann. § 67-6-322.

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