v v2023.0
Publish Date: July 31, 2023 at 3:19:11 PM
Effective Date: | August 01, 2023 |
Completed by: | Michael Ward |
E-mail Address: | Michael.Ward@tn.gov |
Phone number: | (615) 946-8611 |
Date Revised: | August 01, 2023 |
Taxability Treatment | Definition Treatment | ✓ Statute/Rule Cite Reference |
✓ Comments | ✓ Date Revised |
Credits 2.7, 2.8, 2.13, Post Transactions 5.1, 8.1.a.i, 8.1.c.ii, 8.1.h.i, 8.1.h.ii, 8.1.i.iii, 8.1.j.iii, 8.1.m.ii, 8.2.b.i, 8.2.c.i, 8.2.f.ii, 8.3.i.i, 9.1.A.i, 9.2.B.1, 9.2.C.1 - added links to TN webpages
Credits 2.7, 2.8, 2.13, Post Transactions 5.10.a, 5.10.c, 5.15.a, 5.15.b - updated citations and/or comments
Each Tax Administration Practice is in the Library of Tax Administration Practices in the Streamlined Sales and Use Tax Agreement (SSUTA) as amended through November 7, 2023. See Appendix E of the SSUTA for additional explanations and examples related to the Tax Administration Practices".
"Tax Administration Practices" indicates which administrative practices the state follows and provides an explanation of the state's practice if it does not follow a listed practice.
To the extent possible under each state's laws, sellers and CSPs are relieved from tax liability to the member state and its local jurisdictions for having charged and collected the incorrect amount of sales and use tax resulting from the seller or certified service provider relying on erroneous data provided by the member state relative to the tax administration practices.
To the extent possible under each state's laws, sellers and CSPs are also relieved from tax liability to the member state and its local jurisdictions for having charged and collected the incorrect amount of sales and use tax until the first day of the calendar month that is at least 30 days after notice of a change to the state's "Taxability Matrix: Tax Administration Practice" is submitted to the governing board, provided the seller or CSP relied on the prior version of the Taxability Matrix.
As of June 2021 the Taxability Matrix was separated into two documents: Taxability Matrix: Library of Definitions (previously Section 1) and Taxability Matrix: Tax Administration Practices (previously Section 2).
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
T.C.A. 67-6-102(87)
T.C.A. 67-6-102(87)
T.C.A. 67-6-102(87)
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
T.C.A. 67-6-507(a),
67-6-313(f),
Rule 1320-05-01-.91(1)
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
T.C.A. 67-6-507(a),
67-6-313(f),
Rule 1320-05-01-.91(1)
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
T.C.A. 67-6-507(a),
67-6-313(f),
Rule 1320-05-01-.91(1)
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Streamlined sourcing is not currently in effect in Tennessee. Certain streamlined sourcing provisions are effective July 1, 2024. Credit is not available in Tennessee for taxes paid in other states where the taxpayer incurred the Tennessee tax before a taxable event occurred in another state.
Yes
No
Statute/Rule Cite
Comment
Streamlined sourcing is not currently in effect in Tennessee. Certain streamlined sourcing provisions are effective July 1, 2024. 2.1- A purchaser will receive credit for sales tax legally imposed and paid in another state, against the amount of use tax due in Tennessee.
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
T.C.A. 67-6-102(87)
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
T.C.A. 67-6-507(b),
Rule 1320-05-01-.91(1)
Yes
No
Statute/Rule Cite
Comment
Streamlined direct mail sourcing is not currently in effect in Tennessee. Streamlined sourcing for adv. and prom. direct mail delivered out of state is sourced out of state eft. 7/1/2024. For transactions prior to 7/1/2024, credit for sales tax paid in another state is given when title to adv. and prom. direct mail transfers to the purchaser outside Tennessee, prior to the recipients' receipt of the direct mail in Tennessee.
Yes
No
Statute/Rule Cite
Comment
T.C.A. 67-6-507(a),
67-6-313(f),
Rule 1320-05-01-.91(1)
Yes
No
Statute/Rule Cite
Comment
T.C.A. 67-6-507(a),
67-6-313(f),
Rule 1320-05-01-.91(1)
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
If you answer "Yes" to 3.1, you do not need to complete 3.1.a, b, and c below.
If you answer "No" to 3.1, please complete 3.1.a, b, and c below.
If you answer "Yes" to 3.2, you do not need to complete 3.2.a, b, and c below.
If you answer "No" to 3.2, please complete 3.2.a, b, and c below.
If you answer "Yes" to 3.3, you do not need to complete 3.3.a, b, and c below.
If you answer "No" to 3.3, please complete 3.3.a, b, and c below.
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
See Claim for Credit or Refund of Sales or Use Tax
A claim for refund of sales or use tax may also be filed through the Tennessee Taxpayer Access Point (TNTAP).
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Rule 1320-05-01-.50,
Rule 1320-05-01-.79
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Seller must refund the tax collected to the purchaser.
A seller's records must show that customers have been refunded the Tennessee sales or use tax, or that they have been given credit for such Tennessee tax.
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
A seller's records must show that customers have been refunded the Tennessee sales or use tax, or that they have been given credit for such Tennessee tax. The sellers records must show the refund of the full amount of tax and additional charge for the correct full amount of tax for additional purchases.
Yes
No
Statute/Rule Cite
Comment
T.C.A. 67-1-1802,
Rule 1320-05-01-.79
Sales or use taxes which were collected from or passed on to customers by the taxpayer shall not be refunded to the seller, unless the seller has refunded or credited the sales or use tax to its customers.
T.C.A. 67-1-1802,
Rule 1320-05-01-.79
T.C.A. 67-1-1802,
Rule 1320-05-01-.79
Yes
No
Statute/Rule Cite
Comment
T.C.A. 67-1-1802,
Rule 1320-05-01-.79
Yes
No
Statute/Rule Cite
Comment
T.C.A. 67-1-1802,
Rule 1320-05-01-.79
A seller's records must show that customers have been refunded the Tennessee sales or use tax, or that they have been given credit for such Tennessee tax.
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
Yes
No
Statute/Rule Cite
Comment
T.C.A. 67-1-1802,
Rule 1320-05-01-.79
Not an option for customers. Certain exemption/refunds related to; pollution control, certified green energy production facilities, and refunds where an individual paid the use tax directly to a County Clerk may be obtained directly from the Department of Revenue.
If the refund claim is $2,500 or greater and the seller will not refund the sales tax to the customer after 2 requests, the customer may request a refund directly from the Commissioner of Revenue.
See T.C.A. 67-1-1802(e) for details.
T.C.A. 67-1-1802
If the refund claim is $2,500 or greater and the seller will not refund the sales tax to the customer after 2 requests, the customer may request a refund directly from the Department of Revenue. Otherwise refunds can only be made to parties paying the tax directly to the Commissioner of Revenue.
See T.C.A. 67-1-1802(e) for details.
Yes
No
Statute/Rule Cite
Comment
Reference Number
Disclosed Practice 7 - Classification of Medical Products in Appendix L Identified as "Not Classified by SSTGB"
Yes
No
Statute/Rule Cite
Comment
Tennessee follows Appendix L, Healthcare Products List, and does not have any other specific defined medical terms. Products that are not defined using streamlined terms are either taxable as tangible personal property or there is a separate exemption for the product.
Medical Products 7.2
Answer No if the item is not classified under any of the terms listed in Medical Products Disclosed Practice 7.1 or a state-specific defined term (other than tangible personal property).
Answer Yes if the item is classified under one of those terms, provide the appropriate statute/rule city and indicate in the "Comment" column the defined term under which the item is classified.
These tax administration practices identify how each state classifies the products identified as "Not Classified by SSTGB" in Appendix L, but do not indicate the taxability of those products.
SSUTA Defined Term
State Specific Defined Term
Statute/Rule Cite
Comment
(if applicable, indicate defined term under which the item is classified)
Breast pumps (See Reference #s 52500-52512)
T.C.A. 67-6-314(4)
T.C.A. 67-6-314(7)
T.C.A. 67-6-314(7)
T.C.A. 67-6-314(10)
T.C.A. 67-6-314(10)
T.C.A. 67-6-314(10)
Disclosed Practice 8 – Collection and Remittance Requirements Related to Remote Sellers, Marketplace Sellers, and Marketplace Facilitators/Providers from Appendix E of the SSUTA. NOTE: Additional explanatory information and examples can be found in Appendix E of the SSUTA.
Unless otherwise specified, Disclosed Practice 8 only applies to the states’ sales and use tax laws, and not to other taxes or other regulatory registration requirements.
(These tax administration practices address how a member state administers its sales and use tax economic nexus, remote seller, and marketplace facilitator/provider statutes. The United States Supreme Court (SCOTUS) ruled in South Dakota v. Wayfair on June 21, 2018, that states can require sellers to collect and remit sales or use tax on sales delivered to locations within their state even if the seller does not have a physical presence in the state.)
Unless otherwise noted, States should answer every disclosed practice question/statement.
Does Your State Follow this Practice?
Does Your State Follow this Practice? If You Answered No, Describe the Difference Between the Practice as Adopted by the Governing Board and Your state's Treatment. Add Additional Comments if desired.
Reference Number
Disclosed Practice 8.1– Remote sellers
Yes
No
Statute/Rule Cite
Comment
General Definition
For purposes of Disclosed Practice 8.1.a
"Remote Seller" is generally a seller that does not have any physical presence in a state (no property or employees) but who sells products or services for delivery into that state.
A remote seller includes a "marketplace seller" that does not have a physical presence in the state.
(Note: A state may allow a seller to have limited physical presence in the state and still treat the seller as a remote seller as provided in (A) and (B).)
(A)(1) Inventory Controlled by 3rd Party
(A) (1) The State still treats a seller as a "Remote Seller" if the seller’s only physical presence in the state is inventory owned by that seller that is in a third party’s warehouse which the seller does not control (e.g., Marketplace Facilitator/Provider controls the movement of inventory). (Note, the exception in (A)(2) and/or (B) may also apply.)
(A)(2) Inventory Seller Controls
(A)(2) The State still treats a seller as a “Remote Seller” if the seller’s only physical presence in the state is inventory owned by that seller that is in a third party’s warehouse and the seller controls the movement of the inventory. (Note, the exception in (A)(1) and/or (B) may also apply.)
(B) Employees
(B) The State still treats a seller as a “Remote Seller” if the seller’s only physical presence in the state is an employee that is not involved in making sales. If for purposes of Disclosed Practice 8.1.(B) the State distinguishes between retail and wholesale sales, the State will indicate it in the Comment column.
(Note, the exception in (A) may also apply.)
8.1.a.i.
The State’s Remote Seller monetary economic nexus threshold is “$100,000” (i.e., either $100,000 or more” or “more than $100,000”). (Definition of “type of products” subject to the threshold calculation is addressed in 8.1.b.)
If ”Yes”, indicate in the Comment column if the State’s monetary economic nexus threshold is:
If “No”, indicate in the Comment column the dollar amount of the State’s monetary economic nexus threshold and whether it is:
If the state does not have a monetary economic nexus threshold, indicate ”No Threshold”.
T.C.A. 67-6-524(b)
Tennessee's economic nexus threshold is "more than $100,000" in sales, excluding sales for resale, to consumers in Tennessee.
Reference Number
Disclosed Practice 8.1.b. – What Type of Products Does the State Include in its Economic Nexus Threshold Calculation?
Yes
No
Statute/Rule Cite
Comment
Disclosed Practice 8.1.b.i.
The State includes sales of all types of products (e.g., sales of tangible personal property, sales of digital good, sales of services) in its economic nexus threshold calculation.
If no, indicate in the Comment column which types of product sales are included in the state’s economic nexus threshold.
(Note: For purposes of these disclosed practices, the sales of the types of products identified in 8.1.b. are the sales to be considered when computing the state’s economic nexus threshold(s).)
T.C.A. 67-6-501(a)
Reference Number
Disclosed Practice 8.1.c. - How is the State’s Remote Seller Monetary Economic Nexus Threshold Calculated? – Only one answer should be “yes”.
Yes
No
Statute/Rule Cite
Comment
8.1.c.i. - GROSS
The State’s Remote Seller monetary economic nexus threshold is based on GROSS sales, gross revenue or gross receipts from all sales.
8.1.c.ii. - RETAIL
The State’s Remote Seller monetary economic nexus threshold is based only on RETAIL sales (only excludes sales for resale).
T.C.A. 67-6-524(b)
8.1.c.iii. - TAXABLE
The State’s Remote Seller monetary economic nexus threshold is based only on TAXABLE sales (all sales that are taxable ).
8.1.c.iv. - OTHER
The State calculates the monetary economic nexus threshold based on something other than Gross, Retail or Taxable sales. Indicate in the Comment column what your state’s monetary economic nexus threshold is based on.
Reference Number
Disclosed Practice 8.1.d. - What is the State’s Remote Seller Transactional Economic Nexus Threshold?
Yes
No
Statute/Rule Cite
Comment
Best Practice for 8.1.d. - States do not have a transactional economic nexus threshold.
8.1.d.i.
The State’s Remote Seller transactional economic nexus threshold is “200” (i.e., either“200 or more” or “more than 200”) separate transactions. (What constitutes a “transaction” is explained in 8.1.e and 8.1.f)
If “Yes” - Indicate in the comments if transactional threshold is:
If “No” – Indicate in the Comment column the State’s transactional economic nexus threshold and whether it is:
If the State does not have a transactional economic nexus threshold indicate ”No Threshold” in the Comment column.
T.C.A. 67-6-524(b)
NA, Tennessee does not have a transactional economic nexus threshold.
Reference Number
Disclosed Practice 8.1.e. - Which Transactions Are Used to Determine if a Seller Has Met a State’s Transactional Economic Nexus Threshold?
Yes
No
Statute/Rule Cite
Comment
8.1.e.i
The State’s Remote Seller transactional economic nexus threshold is calculated using the same transactions that are used to calculate the State’s monetary economic nexus threshold (gross, retail or taxable) as indicated in Disclosed Practice 8.1.b.
T.C.A. 67-6-524(b)
NA, Tennessee does not have a transactional nexus threshold.
Reference Number
Disclosed Practice 8.1.f. - For Purposes of Computing the State’s Transactional Economic Nexus Threshold, what is Considered a “Transaction”? Only one answer should be “Yes” for i., ii., or iii.
Yes
No
Statute/Rule Cite
Comment
8.1.f.i.
The State’s Remote Seller transactional economic nexus threshold is based on the number of invoices.
NA
8.1.f.ii.
The State’s Remote Seller transactional economic nexus threshold is based on the number of orders placed, regardless of whether multiple invoices or shipments are used to fulfill each order placed (e.g., if a single order is placed but it is delivered in three (3) separate shipments, it is considered one (1) transaction).
NA
8.1.f.iii.
The State’s Remote Seller transactional economic nexus threshold is based on the quantity of items sold (each item on a single invoice is considered a separate transaction (e.g., a prepackaged box of the same product is one item (box of 12 pencils); however, multiple purchases of the same product are separate items (12 individual pencils)).
NA
8.1.f.iv.
An invoice that includes items to be delivered into multiple states is considered a transaction in this State if any of the items on the invoice are delivered into this State.
NA
Reference Number
Disclosed Practice 8.1.g. – Transaction with Multiple Payments
Yes
No
Statute/Rule Cite
Comment
8.1.g.i.
A transaction that requires multiple payments (e.g., monthly payments) is considered one transaction for purposes of the State’s Remote Seller transactional economic nexus threshold (i.e., each payment is not considered a separate transaction).
NA
Reference Number
Disclosed Practice 8.1.h. – Does a Remote Seller who makes sales through a Marketplace Facilitator/Provider need to include the sales made through the marketplace in determining if it meets a state’s economic nexus threshold?
Yes
No
Statute/Rule Cite
Comment
8.1.h.i.
A Remote Seller shall include its sales made through a Marketplace Facilitator/Provider that is registered in the State when determining if it meets or exceeds the state’s economic nexus threshold.
T.C.A. 67-6-501(g)
8.1.h.ii.
A Remote Seller shall include its sales made through a Marketplace Facilitator/Provider that is not registered in the State when determining if it meets or exceeds the state’s economic nexus threshold.
T.C.A. 67-6-501(g)
Reference Number
Disclosed Practice 8.1.i. - What period of time does the State base its a remote seller economic nexus threshold on? – Only one answer should be yes.
Yes
No
Statute/Rule Cite
Comment
8.1.i.i. - EITHER CURRENT or PREVIOUS YEAR
The State’s economic nexus threshold is based on a Remote Seller exceeding the threshold in either the previous calendar year or current calendar year.
8.1.i.ii. - ONLY PREVIOUS YEAR
The State’s economic nexus threshold is based on a remote seller exceeding the threshold only in the previous calendar year.
8.1.i.iii. - OTHER
The State’s economic nexus threshold is based on a different period of time. (Provide the basis in the Comment column.)
The economic nexus threshold is based on a dealer making sales that exceed $100,000 to consumers in Tennessee in the previous twelve month period.
Reference Number
Disclosed Practice 8.1.j. – When does the State require a remote seller to register and begin collecting and remitting the applicable tax? – Only one answer should be yes.
Yes
No
Statute/Rule Cite
Comment
8.1.j.i.
The State requires a Remote Seller to register, collect and remit the tax on the next transaction after meeting or exceeding the threshold.
8.1.j.ii.
The State requires a Remote Seller to register, collect and remit the tax by no later than the first day of the first calendar month that begins at least X days after meeting or exceeding the threshold.
Indicate in the Comment column the number of days after the threshold is met that the seller is required to register and begin collecting and remitting the tax.
8.1.j.iii.
Other. If the State’s answer to 8.1.j.i and j.ii is “no” indicate in the Comment column when a Remote Seller must register and begin collecting and remitting the tax.
T.C.A. 67-6-524(b)
The remote seller is required to register on the first day of the third calendar month following the month in which the threshold was met.
Reference Number
Disclosed Practice 8.1.k. - When is a remote seller who falls below a state’s economic nexus threshold allowed to stop collecting and remitting the tax?
Yes
No
Statute/Rule Cite
Comment
8.1.k.i.
A Remote Seller that falls below the State’s Remote Seller economic nexus threshold(s) during the measurement period (See 8.1.i.) may cancel its registration or request inactive status any time after the measurement period ends.
If yes, indicate in the Comment column if the remote seller can:
If the answer is no, indicate in the Comment column when a Remote Seller can cancel their registration or request inactive status.
The remote seller may close its sales and use tax registration account (provide a cease date in TNTAP) when the remote seller no longer collects the tax because the remote seller no longer meets the Tennessee economic nexus threshold and has no physical presence in Tennessee. Once closed, the Tennessee resale certificate will no longer be valid for future purchases for resale.
Reference Number
Disclosed Practice 8.1.l. – What Type of Permit Does a Remote Seller Apply For? – Only one answer should be yes.
Yes
No
Statute/Rule Cite
Comment
8.1.l.i.
The State requires a Remote Seller to register to collect sales tax.
8.1.l.ii.
The State requires a Remotes Seller to register to collect (seller’s) use tax.
8.1.l.iii.
The State requires a Remote Seller to register under a single registration to collect both sales and (seller’s) use tax.
T.C.A. 67-6-524(b)
8.1.l.iv.
The State allows a Remote Seller to register to collect either a sales or (seller’s) use tax. If yes, please explain in Comment column any special circumstances.
Disclosed Practice 8.1.m. Can a Remote Seller that is not registered or required to be registered in any State provide an exemption certificate claiming sale for resale to a Seller located in this state and can that Seller accept that exemption certificate? More information on a state’s acceptance of an exemption certificate is available at: Exemptions (streamlinedsalestax.org)
Yes
No
Statute/Rule Cite
Comment
8.1.m.i.
A Remote Seller that is not registered or required to be registered in any State can provide an exemption certificate to a Seller in this State claiming a sale for resale for those items the Remote Seller will resell, and the Seller in this State may accept such exemption certificate.
If yes, indicate in the Comment column what identification number, if any, the Remote Seller is required to put on the certificate?
T.C.A. 67-6-102(83),
Rule 1320-05-01-.62,
Rule 1320-05-01-.29(2),
Rule 1320-05-01-.68(1-3)
An out-of-state dealer (including an out-of-state marketplace seller) that is not registered for sales tax in any state (e.g., home state does not impose sales tax) may provide a Tennessee supplier with a fully completed Streamlined Sales and Use Tax Exemption Certificate including a tax ID number for another tax type (e.g., business tax or excise tax) issued by its home state or its federal ID number (FEIN).
8.1.m.ii.
A Remote Seller that is not registered or not required to be registered in any State purchasing items for resale from a third- party supplier (drop shipper) who will deliver the items to the Remote Seller’s customer located in this State can issue an exemption certificate claiming resale and the third-party supplier (drop shipper) can accept such exemption certificate. See SSUTA Sec. 317.A.8 for Drop Shipment requirements.
If yes, indicate in the Comment column what identification number, if any, the Remote Seller is required to put on the exemption certificate.
T.C.A. 67-6-102(83),
Rule 1320-05-01-.62,
Rule 1320-05-01-.29(2),
Repeal eft. 1-10-22 of
Rule 1320-05-01-.96
Rule 1320-05-01-.96 was repealed eft. 1-10-22.
Other state resale certificates may be accepted by Tennessee suppliers for goods drop shipped to out-of-state dealer's Tennessee customers. A Tennessee supplier may accept a resale certificate issued by another state or a fully completed Streamlined Sales and Use Tax Exemption Certificate that includes the tax ID number issued by the other state, or in the case of a foreign seller, a tax ID number issued by its home country to make drop shipped sales for resale without tax.
General definition of Marketplace Seller
Disclosed Practice 8.2 - Marketplace Sellers[Note: Most States enacted laws related to Marketplace Facilitators/Providers that resulted in a Marketplace Seller definition. A “Marketplace Seller” is generally a seller who sells products or services through a physical or electronic marketplace operated by a Marketplace Facilitator/Provider.]
A Marketplace Seller who does not have a physical presence in the state should see DP 8.1 for additional threshold, registration, filing and remittance requirements.
Reference Number
Disclosed Practice 8.2.a - Does a State require a Marketplace Seller to register in the state when all sales are made through Marketplace Facilitators/Providers that are registered to collect and remit the tax on behalf of the Marketplace Sellers?
Yes
No
Statute/Rule Cite
Comment
8.2.a.i.
The State requires a Marketplace Seller that is a “Remote Seller” that sells exclusively through Marketplace Facilitators/Providers to register with the State.
T.C.A. 67-6-102(55), (56), and (57),
67-6-501(f) and (g)
The marketplace facilitator is collecting and remitting the Tennessee sales or use tax.
8.2.a.ii.
The State requires a Marketplace Seller with a physical presence (i.e., not a Remote Seller) that sells exclusively through Marketplace Facilitators/Providers to still register with the State.
T.C.A. 67-6-601,
67-6-102(55), (56), and (57)
Note, the Tennessee seller will need a Tennessee resale certificate. The Tennessee seller may request alternative filing status (quarterly or annual filing) and file $0 sales on its Tennessee return since it has no direct sales.
Disclosed Practice 8.2.b – Does the State require a Marketplace Seller to include its sales (dollars and transactions) made through a Marketplace Facilitator/Provider in determining if it meets or exceeds the State’s economic nexus threshold?
Yes
No
Statute/Rule Cite
Comment
8.2.b.i.
The State requires a Marketplace Seller to include its sales (dollars and transactions) made through a Marketplace Facilitator/Provider in determining if it meets or exceeds the state’s economic nexus threshold. See Disclosed Practice 8.1.b. for which types of transactions must be included.
T.C.A. 67-6-501(g),
67-6-102(55), (56), and (57)
The marketplace facilitator is collecting and remitting the Tennessee sales or use tax.
Disclosed Practice 8.2.c – Does the State require a Marketplace Seller that is registered and filing in the State to include its marketplace sales in the total sales reported on its tax return and take a deduction as if the sales are exempt?
Yes
No
Statute/Rule Cite
Comment
8.2.c.i.
The State requires a Marketplace Seller registered and filing in the State to include its sales through a Marketplace Facilitator/Provider on its tax returns. (If yes, explain in Comment column on how the deduction is claimed for such sales.)
T.C.A. 67-6-501(g),
67-6-102(55), (56), and (57)
The marketplace facilitator is collecting and remitting the Tennessee sales or use tax.
Disclosed Practice 8.2.d – Does the State require a Marketplace Seller to maintain exemption documentation only for its direct sales, and not for sales made through a Marketplace Facilitator/Provider?
Yes
No
Statute/Rule Cite
Comment
8.2.d.i.
The State requires a Marketplace Seller to maintain exemption documentation only for its direct sales, and not for sales made through Marketplace Facilitators/Providers.
T.C.A. 67-6-102(55), (56), and (57),
67-6-501(f) and (g),
Rule 1320-05-01-.78,
Rule 1320-05-01-.80
The marketplace facilitator is liable for its sales and the marketplace sales it facilitates and is responsible for its own exemption documentation.
Disclosed Practice 8.2.e – Does the State allow a Marketplace Seller to rely upon a customer’s exemption documentation for its direct sales, even where the exemption documentation is maintained by a Marketplace Facilitator/Provider?
Yes
No
Statute/Rule Cite
Comment
8.2.e.i.
The State allows a Marketplace Seller to rely upon a customer’s exemption documentation for its direct sales even though that exemption documentation is maintained by a Marketplace Facilitator/Provider (e.g., Marketplace Seller has access to the Marketplace Facilitator’s/Provider’s exemption documentation).
T.C.A.67-6-102(55), (56), and (57),
67-6-501(f) and (g),
Rule 1320-05-01-.78,
Rule 1320-05-01-.80
The marketplace facilitator registered in Tennessee is liable for its sales and the marketplace sales it facilitates.
The marketplace seller is liable only for its direct sales.
Each of the dealers is required to keep its own books and records to evidence exempt sales.
Disclosed Practice 8.2.f – Can a Marketplace Seller that is not registered or not required to be registered in any State issue an exemption certificate to a Seller located in this State claiming sale for resale and can that Seller accept that exemption certificate?
Yes
No
Statute/Rule Cite
Comment
8.2.f.i
A Marketplace Seller that is not registered or required to be registered in any State can issue an exemption certificate to a Seller located in this State claiming resale for those items the Marketplace Seller will resell and the Seller in this State may accept such exemption certificate.
If yes, indicate in the Comment column what identification number, if any, the Marketplace Seller is required to put on the certificate.
T.C.A. 67-6-601,
67-6-102(57) and (83),
Rule 1320-05-01-.29(2),
Rule 1320-05-01-.62,
Rule 1320-05-01-.68(1-3)
Marketplace sellers located in Tennessee must register for sale and use tax in Tennessee even if sales are exclusively made through a marketplace facilitator that is collecting Tennessee sales or use tax. A Tennessee marketplace seller should have a Tennessee resale certificate. Remote sellers and foreign remote sellers may furnish its vendor with a fully completed Streamlined Certificate of Exemption to claim sales for resale.
See 8.1.m.i. above.
See Rule 1320-05-01-.29(2).
8.2.f.ii.
A Marketplace Seller that is not registered or not required to be registered in this State purchasing items for resale from a third- party supplier (drop shipper) who will deliver the items to the Marketplace Seller’s customer located in this State can issue an exemption certificate claiming resale and the third-party supplier (drop shipper) can accept such exemption certificate. See SSUTA Sec. 317.A.8 for Drop Shipment requirements.
If yes, indicate in the Comment column what identification number, if any, the Marketplace Seller is required to put on the certificate.
T.C.A. 67-6-601,
67-6-102(57) and (83),
Rule 1320-05-01-.29(2),
Rule 1320-05-01-.62,
Repeal eft. 1-10-22 of
Rule 1320-05-01-.96
An out-of-state dealer (including an out-of-state marketplace seller) that is not registered for sales tax in any state (e.g., home state does not impose sales tax) may provide a Tennessee supplier with a fully completed Streamlined Sales and Use Tax Exemption Certificate including a tax ID number for another tax type (e.g., business tax or excise tax) issued by its home state or its federal ID number (FEIN).
See 8.1.m.ii.
Reference Number
Disclosed Practice 8.2.g - Marketplace Seller Liability and Audits
Yes
No
Statute/Rule Cite
Comment
8.2.g.i.
A Marketplace Seller is liable for the tax on sales made through a Marketplace Facilitator/Provider if the Marketplace Seller provides incorrect or insufficient information. (Explain in Comment column if there are exceptions to this rule.)
T.C.A. 67-6-515(d)
67-6-102(55), (56), and (57)
Marketplace facilitator must demonstrate that it made reasonable effort to obtain correct information from the marketplace seller.
8.2g.ii.
The state has a written policy that explains when and how a Marketplace Seller is liable for tax and may be audited on sales made using Marketplace Facilitators/Providers (if yes, provide a reference to the location of the document in the Comment column).
T.C.A. 67-6-515(c)
67-6-102(55), (56), and (57)
The commissioner may not audit or assess taxes against marketplace sellers for sales facilitated by the marketplace facilitator except to the extent the facilitator was relieved of liability for incorrect information or pursuant to T.C.A. 67-6-501(f)(1-3).
Reference Number
Disclosed Practice 8.3 - Marketplace Facilitators/Providers
Yes
No
Statute/Rule Cite
Comment
Marketplace Facilitator/Provider laws/regulations
Marketplace Facilitator General Definition***
For purposes of Disclosed Practice 8.3, a Marketplace Facilitator/Provider is generally a person who owns, operates or otherwise controls a physical or electronic marketplace and facilitates Marketplace Seller’s sales that the Marketplace Facilitator/Provider either directly or indirectly through contracts, agreements, or other arrangements with third parties, collects the payment from the purchaser and transmits all or part of the payment to the Marketplace Seller.
Reference Number
NCSL model definition of Marketplace Facilitator?
(https://www.streamlinedsalestax.org/docs/default-source/misc-published/ncsl-salt-model-marketplace-facilitator-legislation-6-2021.pdf?sfvrsn=2024eb8c_4 )
Yes
No
Statute/Rule Cite
Comment
The State has adopted (and/or follows) the NCSL model definition of Marketplace Facilitator?
T.C.A. 67-6-501(f), (g), and (h),
67-6-515,
67-6-102(26), (27), (53), (55), (56), and (57)
Reference Number
Disclosed Practice 8.3.a - Exceptions to Marketplace Facilitator/Provider Collection Requirements
Yes
No
Statute/Rule Cite
Comment
8.3.a.i.
The State excludes a person as a Marketplace Facilitator/Provider if that person’s sole activity with respect to the transaction with the Marketplace Seller is to provide payment processing services between the seller and purchaser.
If the answer is no, please explain in the Comment column, including if the State’s law is less restrictive, e.g., the payment processing activity is only the principal activity.
T.C.A. 67-6-102(56)(B)(ii)
8.3.a.ii.
The State excludes from Marketplace Facilitator/Provider a person who only provides a platform for sellers to list items for sale and provides information that allows the buyer to contact the seller.
However, the sales transaction and payment for the transaction occurs off the platform directly between the buyer and the seller.
T.C.A. 67-6-102(56)(A)(ii)
8.3.a.iii.
The State excludes a person from being a Marketplace Facilitator/Provider if the person’s participation is limited to listing items for sale and connecting purchasers to Sellers and the Marketplace Facilitator/Provider does not directly or indirectly enter into a contract, agreement, or other arrangement with an unaffiliated payment processor that is solely responsible for collecting funds from purchasers and disbursing those funds to Sellers.
T.C.A. 67-6-102(56)(A)(ii)
8.3.a.iv.
The State excludes from Marketplace Facilitator/Provider a person exclusively providing advertising services.
T.C.A. 67-6-102(56)(B)(i)
8.3.a.v.
The State excludes from Marketplace Facilitator/Provider a person that is registered with the Commodity Futures Trading Commission when using its platform services.
T.C.A. 67-6-102(56)(B)(iii)
8.3.a.vi.
The State requires a Marketplace Facilitator/Provider to collect tax on all types of taxable products (e.g., tangible personal property, digital goods, or services).
If no, please explain in Comment column which types of taxable product the Marketplace Facilitator/Provider is required to collect on.
T.C.A. 67-6-515(a),
67-6-501(a),
67-6-102(56) and (23)(N)
8.3.a.vii
Does the State exclude certain types of transactions from Marketplace Facilitator/Provider sales and use tax collection or remittance requirements (e.g., prepared food/grocery delivery services, hotel or travel intermediaries, car rental services, etc.)? If “yes,” please indicate the exclusions in the Comment column.
T.C.A. 67-6-102(56)(B)(iv),
67-6-102(26), (27), (53), and (56)(B)(iv)
See delivery network company election to be deemed a marketplace facilitator.
T.C.A. 67-6-102(56)(B)(iv).
Reference Number
Disclosed Practice 8.3.b. - Marketplace Facilitator/Provider Notification Requirements
Yes
No
Statute/Rule Cite
Comment
8.3.b.i.
The State requires a “Marketplace Facilitator/Provider” to provide notification or certification to its Marketplace Sellers that it is registered to collect and to remit the tax. (if yes, describe the method)
8.3.b.ii.
The State requires a “Marketplace Facilitator/Provider” to provide notification or certification to the state tax agency that it is registered to collect and remit the tax? (if yes, describe the method)
8.3.b.iii.
The State requires a “Marketplace Facilitator/Provider” to provide notification or certification to its Marketplace Sellers that it is no longer registered to collect and remit the tax as provided in 8.3.h. (If “yes,” describe the method in the Comment column).
Reference Number
Disclosed Practice 8.3.c – Does your State’s Marketplace Facilitator/Provider law provide for a waiver of the Marketplace Facilitator/Provider registration, collection, and remittance requirement?
Yes
No
Statute/Rule Cite
Comment
8.3.c.i.
The State allows for a waiver of registration, collection, and remittance by the Marketplace Facilitator/Provider if substantially all of its Marketplace Sellers are registered with the State to remit the tax.
T.C.A. 67-6-501(f)(2)
8.3.c.ii.
The State allows a Marketplace Seller to continue to collect and remit the tax if mutually agreed to by the Marketplace Facilitator/Provider and if it is approved by the revenue/tax agency.
T.C.A. 67-6-501(f)(3)
The marketplace seller must have annual gross sales in the United States of over one billion dollars, provide evidence is registered in Tennessee, and notify the commissioner that the marketplace seller will collect and remit all applicable taxes and is liable for failure to collect the Tennessee tax.
8.3.c.iii.
The State allows the Marketplace Seller to continue to remit the tax if mutually agreed to by the Marketplace Facilitator/Provider and the revenue/tax agency is notified. Indicate in the Comment column if any threshold requirements must be met before the Marketplace Seller can enter into such agreement .
T.C.A. 67-6-501(f)(3)
See 8.3.c.ii. above.
Reference Number
Disclosed Practice 8.3.d -Marketplace Facilitator/Provider Monetary Economic Nexus Threshold
Yes
No
Statute/Rule Cite
Comment
8.3.d.i.
The State’s Marketplace Facilitator/Provider monetary economic nexus threshold and calculation is the same as Remote Sellers in Disclosed Practices 8.1.
If different, answer “no” and indicate the monetary economic nexus threshold or calculation differences in the Comment column.
T.C.A. 67-6-501(f)
Tennessee economic nexus threshold is "more than $100,000" in sales to consumers during the previous twelve month period. Effective October 1, 2020.
Reference Number
Disclosed Practice 8.3.e – Marketplace Facilitator/Provider Transactional Economic Nexus Threshold
Yes
No
Statute/Rule Cite
Comment
8.3.e.i.
The State’s Marketplace Facilitator/Provider transactional economic nexus threshold and calculation is the same as Remote Sellers in Disclosed Practices 8.1.
If different, please answer “no” and indicate the transactional economic nexus threshold or calculation differences in the Comment column.
NA, Tennessee does not have a transactional economic nexus threshold.
Reference Number
Disclosed Practice 8.3.f – Marketplace Facilitator/Provider Economic Nexus Measurement Period
Yes
No
Statute/Rule Cite
Comment
8.3.f.i.
The State’s Marketplace Facilitator/Provider Economic Nexus Measurement Period is the same as Remote Sellers in Disclosed Practice 8.1.
If different, please answer “no” and indicate measurement period in the Comment column.
T.C.A. 67-6-501(f)
See 8.3.d.i.
Reference Number
Disclosed Practice 8.3.g – Exceptions to Physical Presence
Yes
No
Statute/Rule Cite
Comment
8.3.g.i.
A Marketplace Facilitator’s/Provider’s physical presence is based solely on its presence and not on the presence of a Marketplace Seller.
8.3.g.ii.
A Marketplace Facilitator/Provider who is below the state’s economic nexus threshold(s) is excluded from collecting and remitting the state’s tax if the Marketplace Facilitator/Provider only has employees located in the state that are not engaged in making sales (if applicable, please indicate any exceptions).
Disclosed Practice 8.3.h. – When is a Marketplace Facilitator/Provider that falls below a state’s economic nexus threshold allowed to stop collecting and remitting the applicable tax?
Yes
No
Statute/Rule Cite
Comment
8.3.h.i.
The State allows a Marketplace Facilitator/Provider who falls below its Marketplace Facilitator/Provider economic nexus threshold during the measurement period to cancel its registration or request inactive status in the same manner as a Remote Seller in Disclosed Practice 8.1.
If different, please answer “no” and indicate differences in the Comment column.
See 8.1.k.i.
Reference Number
Disclosed Practice 8.3.i. - What Type of Permit Does a Marketplace Facilitator/Provider Apply For?
Yes
No
Statute/Rule Cite
Comment
8.3.i.i.
The State’s registration requirement for a Marketplace Facilitator/Provider is the same as Remote Sellers in Disclosed Practice 8.1. If different, please answer “no” and indicate type of registration in the Comment column.
T.C.A. 67-6-515(b)
The marketplace facilitator reports facilitated sales separately from its direct sales.
Reference Number
Disclosed Practice 8.3.j. – What are the Registration and Reporting requirements for a Marketplace Facilitator/Provider?
Yes
No
Statute/Rule Cite
Comment
8.3.j.i.
A Marketplace Facilitator/Provider is only permitted to obtain a single registration and file a single return covering its own sales and those made on behalf of its Marketplace Sellers.
8.3.j.ii.
A Marketplace Facilitator/Provider is permitted to register and file separate returns for its own sales and those made on behalf of Marketplace Sellers.
8.3.j.iii.
Were the answers to 8.3.j.i and 8.3.j.ii both “no”?
If so, explain in the comment column the registration and filing requirements for a Marketplace Facilitator/Provider.
T.C.A. 67-6-515(b)
The marketplace facilitator registers through TNTAP indicating it is a marketplace facilitator. The facilitator will have 1 sales and use tax account for consolidated filing and remittance and will report marketplace facilitated sales separately under 1 profile ID number and file its direct sales under separate profile ID numbers.
Reference Number
Disclosed Practice 8.3.k. – Voluntary Registration as a Marketplace Facilitator/Provider
Yes
No
Statute/Rule Cite
Comment
8.3.k.i.
The State allows a person that does not meet the State’s definition of Marketplace Facilitator/Provider to voluntarily register to collect and remit the tax on behalf of its third-party sellers.
T.C.A. 67-6-531
The agreement to collect and remit sales and use tax for third-party sellers must be approved by the commissioner and be in the best interest of state. The third-party seller will remain liable for uncollected or unpaid tax.
8.3.k.ii.
Will the State enter into an agreement that provides authority for a person to voluntarily register as a Marketplace Facilitator/Provider to collect and remit the tax on behalf of third- party sellers and have the same obligations, rights and protections as a “Marketplace Facilitator/Provider”?
(Note: If a written agreement is required, provide requirements in the Comment column.)
Reference Number
Disclosed Practice 8.3.l. - Marketplace Facilitator/Provider Treatment as a Seller – A Marketplace Facilitator/Provider is treated as the seller for the following:
Yes
No
Statute/Rule Cite
Comment
8.3.l.i.
Refunds – The State allows Marketplace Facilitator/Provider to request a refund from the state in same manner as a seller/retailer.
T.C.A. 67-6-102 (56) and
(23)(N),
67-6-1802
8.3.l.ii.
Vendor discounts - The State applies timely filing/payment discounts/vendor allowances to Marketplace Facilitators/Providers in same manner as a seller/retailer.
Not applicable.
Exception, if the marketplace facilitator enters into agreement with CSP and qualifies as a CSP compensated seller for CSP allowance under the SSUTA and CSP contract.
8.3.l.iii.
Exemption Documentation – The State allows sales made by Marketplace Facilitator/Provider to be exempt based on the Marketplace Facilitator/Provider having access to exemption documentation that is maintained by either the Marketplace Facilitator/Provider or Marketplace Seller.
T.C,A, 67-6-102(55), (56), and (57),
67-6-501(f) and (g),
67-6-102(23)(N),
Rule 1320-05-01-.78,
Rule 1320-05-01-.80
The marketplace facilitator registered in Tennessee is liable for its direct sales and the marketplace sales it facilitates.
The marketplace seller is liable only for its direct sales.
Each dealer is required to keep its own books and records to evidence exempt sales claimed by purchasers.
8.3.l.iv.
Coupons – The State allows coupons, whether issued by a Marketplace Facilitator/Provider or a Marketplace Seller to be deemed to be a retailer’s coupon/discount. (If “no,” indicate in Comment column how such coupons are treated.)
T.C.A. 67-6-102(87)(B)
Seller discounts are not included in sales price if allowed by the marketplace facilitator for its direct sales or the facilitated marketplace sales and the price reduction is not reimbursed by a third-party (e.g. marketplace seller).
8.3.l.v.
Bad Debts – The State allows a sales/use tax bad debt deduction based on the party that is able to claim the federal tax deduction under IRC 166, regardless of which party remitted the sales tax. (If “no”, indicate in the Comment column such restrictions.)
T.C.A. 67-6-507(e)
When the marketplace facilitator collects and remits Tennessee sales and use tax on marketplace sales it facilitates for a marketplace seller, the marketplace facilitator is allowed to claim a bad debt deduction in accordance with T.C.A. 67-6-507(e) if the bad debt is eligible to be deducted for federal income tax purposes under 26 U.S.C. Section 166 by either the marketplace facilitator or marketplace seller. When the marketplace facilitator claims the bad debt deduction for Tennessee sales and use tax purposes on an uncollectible transaction, the marketplace seller may not claim the bad debt deduction for the same transaction.
Reference Number
Disclosed Practice 8.3.m. - Shifting of Liability to Marketplace Seller
Yes
No
Statute/Rule Cite
Comment
8.3.m.i.
A Marketplace Facilitator/Provider is liable for the tax unless a Marketplace Seller provided incorrect or insufficient information.
T.C.A. 67-6-515(d)
8.3.m.ii.
The State has a written policy on what reasonable steps a Marketplace Facilitator/Provider must take to obtain correct and sufficient information from a Marketplace Seller to shift the liability of the tax to the Marketplace Seller (If “yes,” please reference location of the document in the Comment column).
Reference Number
Disclosed Practice 8.3.n. – Marketplace Facilitator/Provider absolved of tax, penalty and interest.
Yes
No
Statute/Rule Cite
Comment
8.3.n.i.
The State absolves a Marketplace Facilitator/Provider of tax, penalty and interest if it can show that a Marketplace Seller or the purchaser already paid the tax on the transaction.
T.C.A. 67-6-501(f)
Commissioner may consider this when a marketplace facilitator is under audit. Marketplace facilitators are liable for sales and use tax on its direct sales and the marketplace sales it facilitates. Marketplace sellers are only liable for tax on its direct sales.
Reference Number
Disclosed Practice 8.3.o. – Is the Marketplace Facilitator/Provider Required to Collect Non-Sales/Use Taxes and Fees?
Yes
No
Statute/Rule Cite
Comment
8.3.o.i.
The State requires a Marketplace Facilitator/Provider to collect and remit other taxes and fees that are also directly imposed on the consumer at the time of the sale. (If yes, please provide the taxes and fees in the Comment column along with legal authority.)
Public Chapter 787 (2020),
Eft. 1-1-21,
T.C.A. 67-4-1502
Short-Term Rental Unit Marketplace - Local Occupancy Tax
See Important Notice 20-20 and Local Occupancy Tax information
Marketplace facilitators are not required to collect the Central Business Improvement District Fee. T.C.A. 67-6-501(h).
8.3.o.ii.
The State requires a Marketplace Facilitator/Provider to collect and remit other taxes and fees that are not directly imposed on the consumer at the time of the sale. (If yes, please provide taxes and fees in the Comment column along with legal authority.)
T.C.A. 67-6-501(h)
Reference Number
Disclosed Practice 8.3.p. – Class Action Lawsuits
Yes
No
Statute/Rule Cite
Comment
8.3.p.i.
Did the State enact class action protections for Marketplace Facilitators/Providers separate from what the State is required to provide for all sellers based on Section 325 of the SSUTA/Agreement?
If yes, provide the statutory reference in the Comment column.
(Note: Indicate in the Comment column if this also applies to Marketplace Sellers.)
T.C.A. 67-6-515(e)
Disclosed Practice 9 – Administration of Exemptions
NOTE: Additional explanatory information and examples can be found in Appendix E of the SSUTA.
These tax administration practices address how a member state administers exemptions that appear on the SST exemption certificate when the transaction is sourced to the state. Not all states allow all of the exemptions listed on the SST exemption certificate. In addition, some exemptions may have limitations or be limited in some manner.
The phrase “exemption certificate” includes both paper exemption certificates and the capture of the required data elements.
Sellers are not required to validate a purchaser’s ID number or to know whether a purchaser is required to be registered in a state.
Purchasers may be held liable for the tax, interest, and penalties on a transaction if the purchaser improperly issues an exemption certificate to the seller.
Unless otherwise noted, States should respond to every disclosed practice question/statement. A state is not required to answer a question if that question is the subject of ongoing litigation in the state. States should provide links to statutes, regulations or published guidance addressing any limitations to an exemption.
Does Your State Follow this Practice?
If You Answered No, Describe the Difference Between the Practice as Adopted by the Governing Board and Your State's Treatment. Add Additional Comments if Desired.
Reference Number
Disclosed Practice 9.1 – General – Seller Requirements - SSUTA Sec. 317 provides the following specific practices that apply to the administration of exemptions and exemption certificates.
Yes
No
Statute/Rule Cite
Comment
9.1.A.
Member states are asked to affirm that they comply with the following requirements. Does your state comply with all the following requirements? If no, indicate in the Comment column.
9.1.A.i.
The seller is not required to verify the purchaser’s ID number or determine the purchaser's registration requirements. (SSUTA Rule 317.A.6.g)
Sellers may choose to verify the validity of Tennessee sales and use tax resale and exemption certificates by navigating to the Tennessee Taxpayer Access Point (TNTAP), click "View Options" under Information and Inquiries, and click on "Sales & Use Tax Certificate Lookup."
9.1.A.ii.
The seller is required to maintain proper records of exempt transactions and provide those records to the state when requested in the form in which it is maintained. Those records may be provided in paper or electronic format. (SSUTA Sec. 317.A.6)
T.C.A. 67-6-409(a)
T.C.A. 67-6-523,
Rule 1320-05-01-.68(1-2), 1320-05-01-.78
9.1.A.iii.
A seller may not accept an exemption certificate for an entity‐based exemption on a sale if the subject of the transaction is actually received by the purchaser at a location operated by the seller within the designated state if the state does not allow such an entity‐based exemption. (SSUTA Sec. 317.B)
T.C.A. 67-6-409(b)(2)
9.1.A.iv.
A drop shipper may accept an ID number to claim the resale exemption as provided below in the Purchaser’s Requirements. The ID number may include an ID number issued by another state. This may result in the same ID number being listed for more than one state. (SSUTA § 317.A.8)
Rule 1320-05-01-.29(2),
1320-05-01-.68(1-3)
Important Notice 22-01 - Drop Shipment Repealed
Sales and Use Tax Manual - Chapter 18 Exemption,
Resale and Sale for Resale.
9.1.B.
Your state requires a seller to renew blanket exemption certificates if more than 12 months elapses between transactions.
If no, indicate in the Comment column the period the certificate remains valid.
T.C.A 67-6-409(b)(1) and (b)(3),
T.C.A. 67-6-523
9.1.C.
A seller is required to obtain the exemption certificate at the time of sale or within 90 days of the sale to receive liability relief provided in Section 317.C. of the SSUTA. (SSUTA Sec. 317.C)
If the period allowed is longer than within 90 days of the sale, indicate in the Comment column the acceptable period of time to obtain an exemption certificate.
T.C.A. 67-6-409(a)(1-2)
Rule 1320-05-01-.68(1-2), 1320-05-01-.78
Sales and Use Tax Manual Chapter 18. Exemptions, Exemption Administration
4. Relief of Liability
Disclosed Practice 9.2 – Purchaser Requirements
Reference Number
Disclosed Practice 9.2.A. – Sales for Resale ID number Requirements, including drop shipments (Sellers – see Seller Requirements in 9.1)
Yes
No
Statute/Rule
Comment
9.2.A.1.i.
Your state requires a purchaser that is required to be registered to collect sales and use tax in your state to include your state’s state-issued sales tax or resale number on an exemption certificate it provides to its seller to claim an exemption from sales/use tax when purchasing for resale.
T.C.A. 67-6-409(a)(1-2),
Rule 1320-05-01-.68(1), 1320-05-01-.29(2)
Sales and Use Tax Manual - Chapter 18 Exemptions, Resales and Sales for Resale
SUT-31 - Sale for Resale - Resale Certificate - Overview
9.2.A.1.ii.
Indicate below if your state accepts the following ID numbers for a purchaser that is not required to be registered to collect sales and use tax in your state on an exemption certificate it provides to its seller to claim an exemption from sales/use tax when purchasing for resale.
Note: If accepted but not required, note in the Comment column.
9.2.A.1.ii.a.
A business registration number issued by your state, other than a sales tax or resale number.
T.C.A. 67-6-409(a)(1-2),
Rule 1320-05-01-.68(1)
Sales and Use Tax Manual - Chapter 18 Exemptions,
Resales and Sales for Resale
SUT-31 – Sale for Resale – Resale Certificate - Overview
9.2.A.1.ii.b.
If the purchaser does not have a business registration number issued by your state, then a state-issued sales tax or resale number from any state.
T.C.A. 67-6-409(a)(1),
Rule 1320-05-01-.68(1),
1320-05-01-.29(2)
Sales and Use Tax Manual - Chapter 18 Exemptions,
Resales and Sales for Resale
SUT-33 – Sale for Resale – Out-of-State Resale Certificates
9.2.A.1.ii.c.
If the purchaser does not have a business registration number issued by any state, then a U.S. Federal Employer ID number (FEIN).
T.C.A. 67-6-409(a)(1)
See 9.2.A.1.ii.b.
9.2.A.1.ii.d.
If the purchaser does not have a state issued sales tax or resale number from any state, a business registration number issued by any state, other than a sales tax or resale number.
T.C.A. 67-6-409(a)(1)
9.2.A.1.ii.e.
If the purchaser is not required to be registered and does not have the ID number in a through d above, then a state issued driver’s license number.
T.C.A. 67-6-409(a)(1)
Law requires a Tennessee sales tax account number for sellers required to be registered in Tennessee.
Out of State sellers not registered in Tennessee may use home state sales tax resale certificate and tax ID number, or tax ID issued by home state for other tax type or FEIN.
A foreign seller may use its home country tax ID number.
A drivers license issued by any state is not acceptable as a tax ID number for purposes of claiming resale exemption in Tennessee. In such a case, purchaser must pay tax.
9.2.A.1.ii.f.
If your state accepts any other ID number, indicate in the Comment column the type of number it accepts and when it can be used.
N/A
9.2.A.1.ii.g.
If a foreign purchaser does not have any of the ID numbers identified above, does your state accept the tax ID number issued by the foreign country (e.g., VAT) on purchases for resale?
T.C.A. 67-6-409(a)(1)
See 9.2.A.1.ii.b.
9.2.A.1.ii.h.
Does your state require an ID number when claiming an exemption for resale if the purchaser does not have any ID number listed in 9.2.A.1.ii.a. through 9.2.A.1.ii.g.?
T.C.A. 67-6-409(a)(1)
Rule 1320-05-01-.68(1),
1320-05-01-.29(2)
Purchaser may not claim resale exemption without a tax ID number as indicated in 9.2.A.1.ii.a through 9.2.A.1.ii.g. Use of SST certificate to claim resale exemption when it does not include a tax ID number is considered incomplete and missing information. Seller accepting an incomplete certificate may be held liable for the tax if the seller is unable to obtain a fully-completed resale certificate.
9.2.B. – Direct Sales to the Federal Government (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with the Federal Government)
Yes
No
Statute/Rule
Comment
9.2.B.1.
Does your state have a statutory exemption, which may be limited, for direct sales to the Federal Government (including transactions with payment by government credit cards that are paid direct by the government)?
T.C.A. 67-6-308,
Rule 1320-05-01-.58
Important Notice 09-01 Purchases by Government Employees
Sales and Use Tax Manual - Chapter 18 Exemptions,
Entity Based Exemptions
SUT-82 - Government Certificate of Exemption
Tennessee Government Exemption Certificate
9.2.B.2.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as the Federal Government?
If yes, enter documentation required in the Comment column.
T.C.A. 67-6-409(a)(1),
Rule 1320-05-01-.58
See 9.2.B.1,
Federal and Tennessee state and local government purchasers should include its FEIN as the tax ID number when using the Streamlined Certificate of Exemption.
9.2.B.3.
Is the name of the federal agency making the purchase required?
T.C.A. 67-6-409(a)(1),
Rule 1320-05-01-.58
See 9.2.B.1.
9.2.C. – Direct Sales to Your State Government (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with your State Government)
Yes
No
Statute/Rule
Comment
9.2.C.1.
Does your State have a statutory exemption, which may be limited, for sales to your State or State agencies from your state?
If no, go to 9.2.D.
T.C.A. 67-6-329(a)(4),
Rule 1320-05-01-.55
Important Notice 09-01 Purchases by Government Employees
Sales and Use Tax Manual - Chapter 18 Exemptions,
Entity Based Exemptions
SUT-82 - Government Certificate of Exemption
Tennessee Government Exemption Certificate
Federal and Tennessee state and local government purchasers should include its FEIN as the tax ID number when using the Streamlined Certificate of Exemption form.
9.2.C.2.
Is the State or State agency required to apply for an exemption number from your state?
· Yes (State or State agency contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
9.2.C.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as your State?
If yes, enter documentation required in the Comment column.
T.C.A. 67-6-409,
Rule 1320-05-01-.55(4)
See 9.2.C.1.
9.2.D. – Direct Sales to a Local Government located in your state (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with a Local Government located in your state)
Yes
No
Statute/Rule
Comment
9.2.D.1.
Does your state have a statutory exemption, which may be limited, for sales to a Local Government located in your state?
If no, go to 9.2.E.
T.C.A. 67-6-329(a)(4),
Rule 1320-05-01-.55
Sales and Use Tax Manual - Chapter 18 Exemptions,
Entity Based Exemptions
SUT-82 - Government Certificate of Exemption
Tennessee Government Exemption Certificate
Federal and Tennessee state and local government purchasers should include its FEIN as the tax ID number when using the Streamlined Certificate of Exemption.
9.2.D.2.
Is the Local Government required to apply for an exemption number from your state?
· Yes (Local Government contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
9.2.D.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as a Local Government located in your state?
If yes, enter documentation required in the Comment column.
T.C.A. 67-6-409,
Rule 1320-05-01-.55(4)
See 9.2.D.1.
9.2.E. – Direct Sales to State Government located in another state (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with State Government from other states)
Yes
No
Statute/Rule
Comment
9.2.E.1.
Does your state have a statutory exemption, which may be limited, for sales to a State Government from another state?
If no, go to 9.2.F.
Rule 1320-05-01-.55(1)
9.2.E.2.
Is the State Government from the other state required to apply for an exemption number from your state?
· Yes (Other State contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
9.2.E.3.
Is an exemption certificate or other documentation required when purchaser is claiming exemption as a State from another state?
If yes, enter documentation required in the Comment column.
9.2.F. – Direct Sales to a Local Government located in another state(See 9.2.L and M for information on sales to contractors and other third parties who have contracts with the Local Government from another state)
Yes
No
Statute/Rule
Comment
9.2.F.1.
Does your state have a statutory exemption, which may be limited, for sales to a Local Government located in another state?
If no, go to 9.2.G.
Rule 1320-05-01-.55(1)
9.2.F.2.
Is the Local Government located in another state required to apply for an exemption number from your state?
· Yes (Local Government contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
9.2.F.3.
Is an exemption certificate or other documentation required when purchaser is claiming exemption as a Local Government located in another state?
If yes, enter documentation required in the Comment column.
9.2.G. – Direct Sales to Tribal Governments or Entities (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with the Tribal Governments)
Yes
No
Statute/Rule
Comment
9.2.G.1.
Does your state’s sales tax agency have published guidance for the treatment of sales to Tribal Governments, Tribal Entities or Tribal members?
If yes, provide links to any published guidance in the Comment column.
9.2.H.
9.2.H. – Sales to Foreign Diplomats
Yes
No
Statute/Rule
Comment
9.2.H.1
Does your state’s sales tax agency have published guidance for any exemptions, which may be limited, for sales to a Foreign Diplomat?
Important Notice 16-03 Diplomatic Tax Exemption Cards
Sales and Use Tax Manual - Chapter 18 Exemptions,
Entity-Based Exemptions
9.2.H.2
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as a Foreign Diplomat?
If yes, enter documentation required and the acceptable ID numbers in the Comment column.
See 9.2.H.1.
9.2.I. – Direct Sales to Charitable Organizations (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with a Charitable Organization)
Yes
No
Statute/Rule
Comment
9.2.I.1.
Does your state have a statutory exemption, which may be limited, for sales to Charitable Organizations?
If no, go to 9.2.J.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
Application for Exempt Organizations or Institutions
Important Notice 15-16 Nonprofit Exemption
Sales and Use Tax Manual - Chapter 18 Exemptions,
Entity-Based Exemptions
SUT-75 – Exemptions – Exemption Certificate Renewal
SUT-77 – Nonprofit Exemption – Overview
SUT-78 – Nonprofit Exemption – Organizations Making Sales of Taxable Product or Services
Tennessee Exempt Organizations & Institutions Sales and Use Tax Exemption Certificate or fully completed Streamlined Certificate of Exemption must include the Tennessee nonprofit exemption number.
An out-of-state nonprofit with a federal 501(c)(3) determination may provide its federal authorization letter instead of Tennessee nonprofit exemption certificate.
9.2.I.2.
Is the Charitable Organization required to apply for an exemption number from your state?
· Yes (Charitable Organization contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.I.1.
9.2.I.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as a Charitable Organization?
If yes, enter documentation required in the Comment column.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.I.1.
9.2.I.4.
Is your state’s own state-issued exemption ID number required when claiming exemption as a Charitable Organization?
If no, indicate in the Comment column which ID numbers are acceptable.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.I.1.
9.2.I.5.
Does your state’s exemption for sales to Charitable Organizations apply to Charitable Organizations located in another state?
If no go to 9.2.J.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.I.1.
9.2.I.6.
Does your state have different requirements for claiming an exemption as a Charitable Organization located in your state than a Charitable Organization located in another state?
If yes, indicate the differences in the Comment column.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.I.1.
9.2.J. – Direct Sales to Religious Organizations (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with a Religious Organization)
Yes
No
Statute/Rule
Comment
9.2.J.1.
Does your state have a statutory exemption, which may be limited, for sales to a Religious Organization?
If no, go to 9.2.K.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
Application for Exempt Organizations or Institutions
Important Notice 15-16 Nonprofit Exemption
Sales and Use Tax Manual - Chapter 18 Exemptions, Entity-Based Exemptions
SUT-75 - Exemptions - Exemption Certificate Renewal
SUT-77 - Nonprofit Exemption - Overview
SUT-78 - Nonprofit Exemption - Organizations Making Sales of Taxable Product or Services
Tennessee Exempt Organizations & Institutions Sales and Use Tax Exemption Certificate or fully completed Streamlined Certificate of Exemption must include the Tennessee nonprofit exemption number.
An out-of-state nonprofit with a federal 501(c)(3) determination may provide its federal authorization letter instead of Tennessee nonprofit exemption certificate.
There is no exemption for a for-profit religious organization.
9.2.J.2.
Is the Religious Organization required to apply for an exemption number from your state?
· Yes (Religious Organization contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.J.1.
9.2.J.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as a Religious Organization?
If yes, enter documentation required in the Comment column.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.J.1.
9.2.J.4.
Is your state’s own state-issued exemption ID number required when claiming exemption as a Religious Organization?
If no, the state should indicate the documentation required in the Comment column.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.J.1.
9.2.J.5.
Does your state’s exemption for sales to Religious Organizations apply to Religious Organizations located in another state?
If no go to 9.2.K.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.J.1.
An out-of-state nonprofit religious organization that meets the requirements outlined in T.C.A. 67-6-322 may apply for Tennessee exemption certificate.
9.2.J.6.
Does your state have different requirements for claiming an exemption as a Religious Organization located in your state than as a Religious Organization located in another state?
If yes, indicate the differences in the Comment column.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.J.1.
9.2.K. – Direct Sales to Educational Organizations (See 9.2.L and M for information on sales to contractors and other third parties who have contracts with an Educational Organization)
Yes
No
Statute/Rule
Comment
9.2.K.1.
Does your state have a statutory exemption, which may be limited, for sales to an Educational Organization?
If no, go to 9.2.L.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
Application for Exempt Organizations or Institutions
Important Notice 15-16 Nonprofit Exemption
Sales and Use Tax Manual - Chapter 18 Exemptions, Entity-Based Exemptions
SUT-75 - Exemptions - Exemption Certificate Renewal
SUT-77 - Nonprofit Exemption - Overview
SUT-78 - Nonprofit Exemption - Organizations Making Sales of Taxable Product or Services
Tennessee Exempt Organizations & Institutions Sales and Use Tax Exemption Certificate or fully completed Streamlined Certificate of Exemption must include the Tennessee nonprofit exemption number.
An out-of-state nonprofit with a federal 501(c)(3) determination may provide its federal authorization letter instead of Tennessee nonprofit exemption certificate.
There is no exemption available for a private for-profit educational organizations.
9.2.K.2.
Is the Educational Organization required to apply for an exemption number from your state?
· Yes (Educational Organization contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.K.1.
9.2.K.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption as an Educational Organization?
If yes, enter documentation required in the Comment column.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.K.1.
9.2.K.4.
Is your state’s own state-issued exemption ID number required when claiming exemption as an Educational Organization?
If no, the state should indicate the documentation required in the Comment column.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.K.1.
9.2.K.5.
Does your state’s exemption for sales to Educational Organizations apply to Educational Organizations located in another state?
If no go to 9.2.L.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.K.1.
9.2.K.6.
Does your state have different requirements for claiming an exemption as an Educational Organization located in your state than as an Educational Organization located in another state?
If yes, indicate the differences in the Comment column.
T.C.A. 67-6-322,
Rule 1320-05-01-.51
See 9.2.K.1.
9.2.L. – Sales to Construction Contractors for sales of construction materials incorporated into real property construction activities for the specified organizations. This does not include sales for resale. (see below)
Yes
No
Statute/Rule
Comment
9.2.L.1.
Does your state have a statutory exemption or published guidance, which may be limited, for sales to construction contractors for construction materials incorporated into real property by that contractor for the following entities?
If yes, indicate any documentation required or provide a link to the published guidance in the Comment column.
If no, go to 9.2.M.
T.C.A. 67-6-209(a), (b), and (c),
Rule 1320-05-01-.07,
1320-05-01-.55(3),
1320-05-01-.58(2),
1320-05-01-.101,
1320-05-01-.103.
Sales and Use Tax Manual - Chapter 6 Use Tax, Contractor's Use Tax
SUT-21 – Sales and Use Tax for Contractors – Overview
9.2.L.1.i.
Federal Government
T.C.A. 67-6-209(d) and (e),
T.C.A. 67-6-384,
Rule 1320-05-01-.102
Exceptions:
209(d) Atomic weapons parts, source materials, special nuclear materials, and by-product materials as defined by the Atomic Energy Act of 1954 for use in, or experimental work with manufacturing processes for or on behalf of the atomic energy commission.
*Tennessee Sales and Use Tax Certificate of Exemption Purchasing Agent Contractors United States Atomic Energy Commission.
209(e) Materials and equipment used for construction or installation in electric generating plant and distribution system; resource recovery facility; coal gasification plant and distribution system; owned and operated by the United States or its agency created Congress
*Tennessee Sales and Use Tax Certificate of Exemption Electric Generating and Distribution Systems, Resource Recovery Facilities, or Coal Gasification Plants and Distribution Systems
384 Sales and use tax exemption for Spallation Neutron Source Facility located at the national laboratory in Tennessee.
*Application through designated authority at the Spallation Neutron Source Facility.
*Spallation Neutron Source Facility Sales and Use Tax Exemption Certificate must include Tennessee tax exemption ID number.
9.2.L.1.ii.
State Government located in your State
T.C.A. 67-6-209(e),
Rule 1320-05-01-.102
Exceptions:
209(e) Materials and equipment used for construction or installation in electric generating plant and distribution system; resource recovery facility; coal gasification plant and distribution system; owned and operated by the State of Tennessee or its agency.
*Tennessee Sales and Use Tax Certificate of Exemption Electric Generating and Distribution Systems, Resource Recovery Facilities, or Coal Gasification Plants and Distribution Systems
9.2.L.1.iii.
State Government located in other States
9.2.L.1.iv.
Local Government located in your State
T.C.A. 67-6-209(e),
Rule 1320-05-01-.102
Exceptions:
209(e) Materials and equipment used for construction or installation in electric generating plant and distribution system; resource recovery facility; coal gasification plant and distribution system; owned and operated by Tennessee political subdivisions or authority organized under Rural Electric and Community Services Cooperative Act.
*Tennessee Sales and Use Tax Certificate of Exemption Electric Generating and Distribution Systems, Resource Recovery Facilities, or Coal Gasification Plants and Distribution Systems
9.2.L.1.v.
Local Government located in other States
9.2.L.1.vi.
Tribal Governments, Tribal entities or Tribal members
9.2.L.1.vii.
Charitable Organizations located in your State
9.2.L.1.viii.
Charitable Organizations located in other States
9.2.L.1.ix.
Religious Organizations located in your State
9.2.L.1.x.
Religious Organizations located in other States
9.2.L.1.xi.
Educational Organizations located in your State
9.2.L.1.xii.
Educational Organizations located in other States
9.2.M. – Sales to third parties who are providing services or performing contracts not related to real property.
Statute/Rule
Comment
9.2.M.1.
Does your state have a statutory exemption or published guidance, which may be limited, for sales to third parties who are providing services or performing contracts not related to real property for the following entities?
If yes, indicate any documentation required or provide a link to the published guidance in the Comment column.
If no, go to 9.2.N.
9.2.M.1.i.
Federal Government
T.C.A. 67-6-384
Sales and use tax exemption for Spallation Neutron Source Facility located at the national laboratory in Tennessee.
*Application through designated authority at the Spallation Neutron Source Facility.
*Spallation Neutron Source Facility Sales and Use Tax Exemption Certificate must include Tennessee tax exemption ID number.
9.2.M.1.ii.
State Government located in your State
9.2.M.1.iii.
State Government located in other States
9.2.M.1.iv.
Local Government located in your State
9.2.M.1.v.
Local Government located in other States
9.2.M.1.vi.
Tribal Governments, Tribal entities or Tribal members
9.2.M.1.vii.
Charitable Organizations located in your State
9.2.M.1.viii.
Charitable Organizations located in other States
9.2.M.1.ix.
Religious Organizations located in your State
9.2.M.1.x.
Religious Organizations located in other States
9.2.M.1.xi.
Educational Organizations located in your State
9.2.M.1.xii.
Educational Organizations located in other States
9.2.N. – Sales of Products used in Agricultural Production
Yes
No
Statute/Rule
Comment
9.2.N.1.
Does your state have a statutory exemption, which may be limited, for products used in Agricultural Production?
If yes, provide link to any published guidance issued by your state’s sales tax agency for the treatment of any published guidance sales of products used in Agricultural Production in the Comment column?
If no, go to 9.2.O.
T.C.A. 67-6-207
Application for Agricultural Sales and Use Tax Exemption
Tennessee Tax Manual for Farmers, Nursery Operators, and Timber Harvesters -
Chapter 3 Agriculture Exemption Certificate,
Chapter 4 Qualification for Agriculture Exemption
SUT-91 - Agriculture Exemption - Overview
SUT-142 - Agriculture Exemption Certificate Renewal
SUT-146 - Agriculture Exemption - Out-of-State Farmers May Apply For Exemption
9.2.N.2.
Is the purchaser required to apply for an exemption number from your state in order to claim the Agricultural Production exemption?
· Yes (purchaser contacts state to apply for an exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
T.C.A. 67-6-207(c)
See 9.2.N.1.
Tennessee Agricultural Sales and Use Tax Certificate of Exemption number is required.
9.2.N.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption for Agricultural Production?
If yes, enter documentation required in the Comment column.
T.C.A. 67-6-207(d)
See 9.2.N.1.
Tennessee Agriculture Sales and Use Tax Certificate of Exemption or fully completed Streamlined Sales Tax Certificate of Exemption must include the Tennessee Agriculture exemption number.
9.2.N.4.
Does your state’s Agricultural Production Exemption apply to Agricultural Production Entities located in another state?
T.C.A. 67-6-207
9.2.N.5.
Is your state’s own state-issued exemption ID number required when claiming exemption for Agricultural Production?
If no, indicate in the Comment column which ID numbers are acceptable.
T.C.A. 67-6-207(c)
See 9.2.N.1.
Tennessee Agriculture Sales and Use Tax Certificate of Exemption or fully completed Streamlined Sales Tax Certificate of Exemption must include the Tennessee Agriculture exemption number.
9.2.N.6.
Does your state have different requirements for claiming an Agricultural Production exemption by a purchaser located in your state than by a purchaser located in another state?
If yes, indicate the differences in the Comment column.
T.C.A. 67-6-207
See 9.2.N.1.
Tennessee Agriculture Sales and Use Tax Certificate of Exemption or fully completed Streamlined Sales Tax Certificate of Exemption must include the Tennessee Agriculture exemption number.
9.2.O. – Sales of products used in Industrial Production/Manufacturing
Yes
No
Statute/Rule
Comment
9.2.O.1.
Does your state have a statutory exemption, which may be limited, for sales of products used in Industrial Production/Manufacturing?
If no, go to 9.2.P.
T.C.A. 67-6-102(46),
T.C.A. 67-6-206,
Rule 1320-05-01-.40,
1320-05-01-.42(2),
1320-05-01-.106.
Application for Industrial Machinery, Energy Fuels and Water Sales and Use Tax Exemption
Sales and Use Tax Manual - Chapter 19 Manufacturers, Manufacturer Exemption Certificate - Generally
SUT-14 – Sales and Use Tax Rate – Manufacturers
SUT-80 – Industrial Machinery Exemption for Manufacturers
Tennessee Manufacturing and Processing Industrial Machinery, Energy Fuels and Water Sales and Use Tax Certificate of Exemption or fully completed Streamlined Sales Tax Certificate of Exemption which must include the Tennessee manufacturing exemption number.
9.2.O.2.
Is the purchaser required to apply for an exemption number from your state?
· Yes (purchaser contacts state to apply for exemption number)
· No (exemption applies, does not require state approval)
If yes, indicate in the Comment column if the exemption number is required to be provided on the exemption certificate or other documentation when claiming this exemption.
T.C.A. 67-6-206(b)(3),
Rule 1320-05-01-.106(1-3)
See 9.2.O.1.
9.2.O.3.
Is an exemption certificate or other documentation required when the purchaser is claiming exemption for sales of products used in Industrial Production/Manufacturing?
If yes, enter documentation required in the Comment column.
T.C.A. 67-6-209(b)(3),
Rule 1320-05-01-.106(1-3)
See 9.2.O.1.
9.2.O.4.
Does your state’s Industrial Production/ Manufacturing Exemption apply to Industrial Production/Manufacturing Entities located in another state?
T.C.A. 67-6-102(46),
T.C.A. 67-6-206,
Rule 1320-05-01-.40,
1320-05-01-.42(2),
1320-05-01-.106
See 9.2.O.1.
9.2.O.5.
Is your state’s own state-issued exemption ID number required when claiming exemption for Industrial Production/Manufacturing?
If no, the state should indicate in the Comment column which ID numbers are acceptable.
T.C.A. 67-6-102(46),
T.C.A. 67-6-206,
Rule 1320-05-01-.40,
1320-05-01-.42(2),
1320-05-01-.106
See 9.2.O.1.
Tennessee Manufacturing and Processing Industrial Machinery, Energy Fuels and Water Sales and Use Tax Certificate of Exemption or fully completed Streamlined Sales Tax Certificate of Exemption which must include the Tennessee manufacturing exemption number
9.2.O.6.
Does your state have different requirements for claiming an Industirial Production/ Manufacturing exemption by a purchaser located in your state than by a purchaser located in another state?
If yes, indicate the differences in the Comment column.
T.C.A. 67-6-102(46),
T.C.A. 67-6-206,
Rule 1320-05-01-.40,
1320-05-01-.42(2),
1320-05-01-.106
See 9.2.O.1.
9.2.P. – Sales of Direct Mail
Yes
No
Statute/Rule
Comment
9.2.P.1.
Does your state allow the purchaser to claim direct mail and assume responsibility for directly reporting tax to the appropriate taxing jurisdictions?
If no, go to 9.2.Q.
9.2.P.2.
Is an exemption certificate or other documentation required when a purchaser claims direct pay responsibility for Direct Mail?
If yes, enter documentation required in the Comment column.
9.2.P.3.
Does your state require an ID number when the purchaser is claiming Direct Mail and assuming the responsibility for directly reporting tax to the appropriate jurisdiction?
If no, go to 9.2.Q.
9.2.P.4.
Is your state’s own state-issued ID number required when the purchaser is claiming Direct Mail and assuming the responsibility for directly reporting tax to the appropriate jurisdiction.
If no, indicate in the Comment column which ID numbers are acceptable.
9.2.Q. – Direct Pay Permit
Yes
No
Statute/Rule
Comment
9.2.Q.1.
Does your state authorize direct pay permits? (SSUTA Sec. 326)
T.C.A. 67-6-102(33) and (34),
Rule 1320-05-01-.68(4)
Sales and Use Tax Manual - Chapter 18 Exemptions, Exemptions Administration, 2. Streamlined Certificate of Exemption
Tennessee Sales and Use Tax Direct Pay Permit or a fully completed Streamlined Certificate of Exemption that must include the Tennessee Direct Pay Permit number.
Direct pay permits issued by other states may not be used to make tax exempt purchases in Tennessee. Sellers may not accept direct pay permits issued by other states on Tennessee sales.
9.2.Q.2.
Is an exemption certificate, direct pay permit or other documentation required when Direct Pay Permit holder is claiming Direct Pay authority?
If yes, enter documentation required in the Comment column.
T.C.A. 67-6-102(33) and (34),
Rule 1320-05-01-.68(4)
See 9.2.Q.1.
9.2.Q.3.
Does the state require an ID number when the Direct Pay Permit holder is claiming Direct Pay authority?
T.C.A. 67-6-102(33) and (34),
Rule 1320-05-01-.68(4)
See 9.2.Q.1.
9.2.Q.4.
Is the state’s own state-issued exemption ID number required when the Direct Pay Permit holder is claiming Direct Pay authority?
If no, indicate in the Comment column which ID numbers are acceptable.
T.C.A. 67-6-102(33) and (34),
Rule 1320-05-01-.68(4)
See 9.2.Q.1.