- Tennessee imposes a 7% state sales and use tax on most tangible personal property, taxable services, software, and other taxable products, plus local option tax of 1.50%–2.75% depending on jurisdiction.
- Remote sellers have economic nexus once Tennessee sales exceed $100,000 in the previous tax year; the threshold includes exempt retail sales but excludes sales for resale.
- A remote seller that crosses the threshold must register and start collecting/remitting on the first day of the third month after the threshold is met, and the obligation is not retroactive.
- Taxable items include clothing and other tangible personal property, prewritten software, repairs/installation, telecommunications and TV programming, and certain digital products.
- Tennessee offers product-, use-, and entity-based exemptions; many entity exemptions require a special exemption certificate, while sellers should retain proper exemption documentation.
Source: sovos.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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