Tennessee Sales Tax Requirements
Except where a specific exemption applies, Sellers are responsible for determining whether their sales are taxable, collecting the correct Tennessee sales tax, and filing and paying the tax to the Tennessee Department of Revenue (DOR).
There has been some confusion over the term “remote seller with no physical presence in Tennessee.” This generally means a seller fulfilling Tennessee orders from outside the state through online, telephone, catalog, mail-order, or similar channels. A vendor who sells in person at a festival, special event, or market in Tennessee has a physical presence in the state and is subject to Tennessee’s rules for in-state and special-event sellers.
Additionally, Tennessee sales-tax reporting is location-specific. Vendors with a valid sales tax account participating in festivals at more than one Tennessee location must keep the sales from each location separate and report them under the appropriate event/location record in TNTAP.
All Chattanooga Market events should be grouped into the same location:
Chattanooga Market
1801 Reggie White Blvd
Chattanooga, TN 37408
Moving forward, we will collect copies of each vendor’s Tennessee sales-and-use tax Certificate of Registration—or documentation supporting an applicable exemption—for our compliance records.
Exemptions Allowed
The following vendors may be exempt from Tennessee sales-tax registration and collection:
- Farmers and nurserymen: Qualifying agricultural products—including fresh produce—are exempt when purchased directly from the farmer or nurseryman who grew or produced them. TN DOR guidance
- Small sellers: Vendors with $4,800 or less in total annual retail sales of tangible personal property are not required to register for Tennessee sales tax. The $4,800 limit applies to the vendor’s total annual retail sales, not merely sales at our markets or a specific festival. TN DOR guidance
Registering with Tennessee
If you do not already have a Tennessee sales-tax account
Use the Tennessee Department of Revenue’s registration system to register a new business or sales-tax account:
- Register a new business through TNTAP
- On the TNTAP home page, select Register a New Business.
If you already have a Tennessee sales-tax account
The special event, market or festival must be added to your existing registration. Tennessee DOR instructs special-event vendors to provide:
- Their consolidated sales-tax account number.
- The festival or event name
- The event date.
- The event address.
Tennessee DOR recognizes Chattanooga Market as a recurring market at this location and prefers that all Chattanooga Market dates be reported under the single location below. Vendors do not need to register each individual Chattanooga Market date separately:
Chattanooga Market
1801 Reggie White Blvd
Chattanooga, TN 37408
Adding a Location
You may add a location through TNTAP by selecting Manage Accounts and then Register a new location:
Tennessee DOR instructions for adding a new location
Tennessee’s special-event guidance also directs previously registered vendors to contact Taxpayer Services at revenue.support@tn.gov before the end of the month in which the event is held and request that the event be added to their account.
Special-event vendor registration and remittance instructions
Report sales under the correct special event location
Tennessee sales-tax reporting is location-specific. Vendors participating in markets and festivals at more than one Tennessee location must keep the sales from each location separate and report them under the appropriate event/location record in TNTAP.
For the Chattanooga Market, use the following event location when registering and reporting:
Chattanooga Market
1801 Reggie White Blvd
Chattanooga TN 37408
Do not report sales from our markets under your home address, another Tennessee festival, or a previously registered event location. If you file a consolidated Tennessee return covering multiple locations, the information for each location must be completed before the consolidated return can be submitted.
Tennessee DOR guidance for returns with multiple locations
Filing and payment
Tennessee sales-and-use tax returns and payments must be submitted electronically through TNTAP. The filing frequency assigned by DOR may be monthly, quarterly, or annual. Monthly and quarterly returns are generally due on the 20th day of the month following the reporting period; annual returns are generally due January 20.
Official Resources:
Please complete the necessary registration before the festival, collect Tennessee sales tax on taxable transactions, retain documentation supporting any exempt sales, and report the festival’s sales under the correct location.
This post provides general information and is not tax or legal advice. Vendors remain responsible for their own registration, collection, filing, and payment obligations. Questions about a vendor’s specific circumstances should be directed to the Tennessee Department of Revenue or a qualified tax professional.