How to sign up for a sales tax permit in Tennessee

Most startup businesses in Tennessee offering certain services or selling a product will require you to register for a sales tax permit. It is commonly referred to as a seller’s permit, sales tax license, sales tax registration or, sales tax number.

In this article, you will determine who needs a sales tax permit, what products and services are taxable, reporting requirements on how to register for a permit.

Who requires a sales tax permit in Tennessee?

Any business must register for a sales tax permit in Tennessee if:

• A business has an economic nexus. It should have a physical presence in the state, such as having a physical place like an office or retail store, warehouse or fulfilment center to store stock.

• Selling taxable services or making retail sales in Tennessee.

• Employees (including agents or sales representatives) who are working in Tennessee.

• An online business situated in Tennessee is selling taxable products to locals.

• An out-of-state business or remote seller gives over $500,000 of taxable services and products to Tennessee residents.

Tangible personal property is defined as products that can be, measured, felt, seen, weighed or touched. Pre-written computer software is regarded as well.

What services and products are taxable in Tennessee?

. Physical products

There are a few abnormalities, but almost all physical products are taxable when sold at retail in the state of Tennessee. Some examples include:

• General merchandise like appliances, furniture and clothing
• Registered items or titled like vehicles

. Digital Products

All digital products are taxable in Tennessee.

Services

 

Most services are not taxable in Tennessee; however, there are a few scenarios, some of which are:

• Short-term lodging
• Providing repair to computer software or tangible personal property
• Cleaning or laundering of any tangible personal property
• Installing of computer software

How to sign up for a sales tax permit in Tennessee

 

The sales tax permit is usually obtained by mailing in the Application for Registration or registering via the Tennessee Taxpayer Access Point.

• Projected annual sales 
• Date business began  
• Fiscal year-end date 
• Mailing and physical address

The time it takes to get a sales tax permit?

 

The Tennessee seller’s permits are available in 1-2 business days if registered online or up to 2 weeks when applying through the mail.

After signing up, the Department of Revenue will send a Certificate of Registration that must be displayed at your business premises.

Do you have to resume your Tennessee sales tax permit?

 

The sales tax permit is a one-time thing, and there are no renewals required. If any information about the business changes, including additional locations, mailing address, or change in ownership, you should update those amendments with the Department of Revenue.

Final thoughts

All this information is crucial, especially if you are new in the business. You do not want to start your business on the wrong side of the law. With all this in place, you will be guaranteed that your startup business will grow and succeed in no time.