![]() Effective October 2020, both remote sellers and marketplace facilitators must register with the Tennessee Department of Revenue to collect sales tax for sales made in the state once they make $100,000 or more in sales. At the same time, Tennessee adopted rules imposing sales tax obligations on marketplace facilitators for sales made by their users. However, under Senate Bill (S.B.) 2932, the sales threshold for when economic nexus would apply was lowered from $500,000 to $100,000. Summary: Tennessee has imposed sales tax obligations on remote sellers since October 2019. For example, if a seller meets the threshold on January 15, it must register, collect and remit sales tax beginning on April 1, for any sales made on and after April 1. The first day of the third month following the month in which the threshold is met. When You Need to Register Once You Exceed the Threshold: Retail sales to individuals, businesses, organizations, and any other purchaser, whether the sale is taxable or exempt. Threshold applies to the previous 12 months. Octothreshold change effective October 1, 2020. Below, we have highlighted several of the key points for remote sellers and marketplace facilitators. However, as of October 1, 2020, the threshold decreased to $100,000. Initially, Tennessee required remote sellers with $500,000 or more in sales to Tennessee customers to register and collect Tennessee sales and use tax. The Tennessee economic nexus is no exception. decision, almost every state has adjusted its sales tax nexus.
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