How to Register for a Sales Tax Permit in Tennessee

Who Needs a Sales Tax Permit in Tennessee

In Tennessee, businesses that sell tangible personal property or provide services subject to sales tax must collect and remit sales tax to the state. This includes physical store locations, service providers, and online sellers.

The economic nexus threshold in Tennessee requires businesses with sales exceeding $100,000 in the state to collect sales tax, even if they don’t have a physical presence in Tennessee.

Examples include a local boutique, a company offering taxable services, and an out-of-state e-commerce store exceeding the sales threshold.

Steps to Register for a Sales Tax Permit in Tennessee

Follow these steps to register for a sales tax permit in Tennessee.

1. Prepare Your Documents

You need the following information: 

• Legal Business Name: Ensure it matches the registration with the Tennessee Secretary of State.
• Physical Business Address: Provide a valid street address, as P.O. boxes are typically not accepted.
• Federal Employer Identification Number (FEIN): Obtainable from the IRS, if not already acquired.
• Contact Information: Include phone numbers and email addresses for primary business contacts.
• North American Industry Classification System (NAICS) Code: This code categorizes your business industry.
• Date of Business Commencement in Tennessee: Indicate when your business operations began or will begin in the state.

2. Register Online via the Tennessee Taxpayer Access Point (TNTAP)
Visit the Tennessee Taxpayer Access Point (TNTAP), click on “Register a business,” provide accurate information, review your application, and submit it through the portal.

3. Wait for Approval

It generally takes 3-5 business days to receive your account number after online registration. Upon approval, you will receive your sales tax permit, allowing you to collect sales tax in Tennessee.

Managing registration alongside business operations can be daunting. doola’s Bookkeeping services simplify the process, ensuring compliance every step of the way.

Understanding Your Sales Tax Responsibilities in Tennessee

In Tennessee, businesses typically file sales tax returns monthly, quarterly, or annually, depending on sales volume. Applying the correct sales tax rates is crucial, as these can vary by state, county, and city levels. Additionally, Tennessee offers specific tax exemptions, and it’s vital to understand the use of resale certificates to know when tax should not be collected.

Common Mistakes to Avoid

• Forgetting to register for a sales tax permit when required.
• Applying incorrect sales tax rates for various local jurisdictions.
• Missing filing deadlines, resulting in penalties.
• Overlooking exempt sales and failing to maintain proper documentation for resale certificates.

How to Maintain Compliance & File Sales Tax Returns

To file sales tax returns in Tennessee, use the TNTAP portal to submit returns and remit payments electronically. Automated solutions can ease tax collection and ensure accuracy.

Remember that doola is here to help with bookkeeping and taxes, ensuring your business remains compliant effortlessly. 

FAQs About Sales Tax Permits in Tennessee

How long does it take to get a sales tax permit?

Typically, the Tennessee Department of Revenue processes tax permit applications in a few days.

Do I need to renew my sales tax permit?

No, once issued, a sales tax permit in Tennessee does not need renewal as long as you remain compliant.

What happens if I stop doing business in Tennessee?

You must close your sales tax account by notifying the Tennessee Department of Revenue.

Are online sellers required to collect Tennessee sales tax?

Yes, if they exceed the $100,000 economic nexus threshold, online sellers are required to collect Tennessee sales tax.

Stay Compliant With doola

Registering for a sales tax permit is crucial for any business operating in Tennessee. Staying compliant demands awareness of deadlines, accurate tax collection, and an understanding of exemptions.

For financial solutions, doola provides guidance to ensure compliance, easing the path for your business to thrive.

Be sure to visit the Tennessee Department of Revenue website for more details and resources.