- Tennessee has changed the basis for marketplace facilitators to calculate sales tax from the customer’s shipping address to the customer or purchaser’s location
- The new rules issued by the Tennessee Department of Revenue state that all sales made through marketplace platforms will be taxed based on the purchaser’s location from July 1, 2024
- Marketplace facilitators are responsible for collecting and remitting Tennessee sales tax on sales made through their marketplace
- A marketplace facilitator must register in Tennessee to collect and remit sales tax if total sales in the state exceed $100,000 in the previous twelve-month period
- Marketplace facilitators must register and begin collecting sales tax on the first day of the third month following the month they meet the threshold
- A marketplace facilitator is a business that facilitates the sale of taxable items through a marketplace on behalf of a seller
- A marketplace seller is a person who makes sales through a marketplace operated by a facilitator
- Out-of-state marketplace sellers are not required to register in Tennessee if all taxable sales are facilitated by a marketplace facilitator, unless they have physical presence in the state or have made $100,000 or more in sales in the state in the previous twelve-month period
Source: tn.gov
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.
