Vendors who contract with the state of Tennessee must be registered to collect sales tax if they make sales that are subject to the Tennessee sales and use tax. This is a contractual requirement from Tennessee’s Department of General Services’ Central Procurement Office that applies to all Tennessee governmental agencies. If the vendor does not make sales that are subject to the sales and use tax, the vendor must provide a letter from the Department confirming that there is no registration requirement.
A business that does not yet have a contract as a vendor for the state of Tennessee or an associated agency does not need to provide any documentation to the Department of Revenue. This business will be required to provide the documentation if and when it is awarded a state contract.
A business that is already registered to collect sales tax should provide a copy of its registration certificate to the Tennessee governmental agency that has asked for a verification of sales tax registration.
A business that cannot locate the registration certificate should navigate to the Tennessee Taxpayer Access Point (TNTAP), Click “View Additional Services” under Help, and click “TN Vendor ContractQuestions.” Then, the business should answer the questions to determine whether it should be registered for sales tax in Tennessee. If a business is not required to register for sales tax, the Department will provide a letter stating this through TNTAP.
Reference: Tenn. Comp. R. & Regs. 1320-05-01-.55.