Tennessee Tennessee

Tennessee

Standard rate:

 7%

Who is obliged to register sales tax:

Remote sellers with no physical presence in Tennessee who met the threshold will be required to register and collect Tennessee sales and use tax.

Threshold:

Beginning October 1, 2020, the sales threshold is $100,000. 

Merchant thresholds by state

Marketplace thresholds by state

The special rules are applicable for the SAAS business.

Software as Service Tax Thresholds by state

Marketplace:

Dealers selling via marketplace located in Tennessee should register for a sales and use tax account and file annual returns even if all of its sales are made via a registered marketplace facilitator. In this case, the remote seller will simply report $0 in sales on the annual return. 

Registration procedure:

Dealers may register online via Tennessee Taxpayer Access Point selecting the item “Register a New Business.”

Sales tax payment and filing date:

Monthly tax file returns should file by the 20th day of the month following the end of the reporting period.
Quarterly filers should file by the 20th day of the month following the end of the quarter.
Annual filers should file by January 20th yearly.

Penalty and interest:

Penalties and interest apply to any failure payments. A penalty of 5% of the unpaid amount is added for every month that a payment is failure, but no more than 25%. Interest is calculated at the current rate of interest.

Discount: