What Does a Tennessee Resale Certificate Look Like?

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Information on Tennessee Resale Certificate

A Certificate of Resale allows a business in Tennessee to purchase items for resale without paying sales tax. To obtain this certificate, follow these steps:

  1. Provide a Tennessee Certificate of Resale to your vendor.
  2. Present a properly completed and verified Tennessee resale certificate to suppliers.

Validating and Using Resale Certificate

Validate and ensure the completion of your Tennessee resale certificate by:

  1. Checking that it is signed and includes the buyer’s Tennessee sales tax registration number.
  2. Using the state’s verification link to confirm the certificate’s validity.

Obtaining and Utilizing Resale Certificates in Various States

To verify a resale certificate in any state:

  1. Check the Taxpayer Access Point or equivalent portal.
  2. Enter the necessary details to ensure compliance and avoid penalties for fraudulent certificates.

Key Points on Resale Certificates and Taxation

  • Resale certificates exempt businesses from paying sales tax on items purchased for resale.
  • While suppliers are not obliged to accept Tennessee resale certificates, most sellers will honor them.
  • Out-of-state resale certificates can be used in Tennessee, provided the supplier agrees.

Tennessee Sales Tax and Nexus

  • Tennessee sales tax is set at 7%, comprising a state and local component.
  • Exemptions may apply to certain items or buyers.
  • Out-of-state retailers become liable for Tennessee tax once annual sales hit $500,000 or more.

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