Taxable Services

Taxable services are identified in Tenn. Code Ann. Section 102(a)(25)(F). Taxable services include:

  1. Charges for the use of rooms or accommodations furnished for periods of less than 90 days.
  2. Charges for services rendered in the operation of parking or vehicle storage facilities other than for parking in state and local government facilities or on the street where the fees are collected by state or local government parking meters.
  3. Charges for either intrastate or interstate telecommunications that are originated or received, and billed to an address in Tennessee.
  4. Charges for repair services of tangible personal property.
  5. Charges for laundry and dry-cleaning services except for coin-operated facilities.
  6. Installing tangible personal property that remains tangible personal property after installation.
  7. Enriching uranium materials, compounds, or products on a "cost plus" or "toll enrichment fee" basis.
  8. Renting or providing space to a vendor or dealer on a temporary basis.
  9. Charges for warranty or service contracts warranting the repair of tangible personal property.

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Suppliers

A supplier is any entity, either in-state or out-of-state, that provides goods or services for a consideration.

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Use Tax Obligation

Use tax is levied at the same rate as the state and local sales and use tax on the sale or lease of any item of tangible personal property or taxable service that is purchased tax-free outside of Tennessee and imported into Tennessee for use, consumption, storage, or distribution. Use tax is also due on items originally purchased for resale but removed from inventory for personal use. Also, use tax is generally due on the cost of tangible personal property purchased by a contractor and used in the performance of a contract. Use tax is self-assessed by the consumer and reported to the Department of Revenue on the consumer use tax return.

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Electronic Data Interchange (EDI)

The Electronic Data Interchange (EDI) program is a method of filing tax returns electronically from one computer to another. Tennessee sales or use tax taxpayers that are required to make their tax payments by Electronic Funds Transfer are required to file their returns through EDI. All other Tennessee sales or use tax taxpayers have the option of filing their returns through EDI.

The EDI setup involves several steps including selecting a certified software vendor or Internet tax service provider, completing the registration process, establishing communications, and performing a test of the chosen software. It's the taxpayer's responsibility to choose a software vendor. Internet tax services provide or develop their own software. To save the taxpayer time and expense, electronic filing has been made available through the state of Tennessee's Web portal. A taxpayer may file returns through the portal application at no cost and be assured that the tax information is timely received by the Department of Revenue and is protected during transmission.

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Electronic Funds Transfer (EFT)

The Tennessee General Assembly has authorized the Commissioner of Revenue to require certain tax payments to be made by funds readily available to the state. Electronic Funds Transfer (EFT) is a method approved by the commissioner for accomplishing this. Rules for the administration of this legislation went into effect on January 1, 1992.

Two payment options are available that use the Automated Clearing House (ACH) system to electronically transfer tax payments. The ACH system is a nationwide network designed for this purpose and is the preferred transaction method for many financial institutions and corporations. A third payment option, Federal Wire Transfer, should be used only as an emergency option.

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Opening Date of Your Business

Please provide the opening date or approximate opening date of your business at its location. If you are registering as an out-of-state business, enter the date of your first sale made in Tennessee.

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Proprietorship

A sole proprietorship is an unincorporated business that is owned by one individual.

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Husband / Wife Ownership

An unincorporated business that is jointly owned by a husband and wife.

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Tennessee Domestic Corporation

A business chartered to do business in Tennessee.

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Foreign Corporation

A business chartered in a state other than Tennessee.

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S Corporation

A corporation which has elected S status is generally exempt from federal income tax other than on certain capital gains and passive income. Its shareholders include on their tax returns their share of the corporation's separately stated items of income, deduction, loss, and credit. These amounts are referred to as "flow through item."

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Professional Corporation

A business chartered in Tennessee engaged in the rendering of professional services.

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General Partnership

A partnership with a general partner who is personally liable for the partnership debts.

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Limited Partnership

A limited partnership is formed under a state limited partnership law and composed of at least one general partner and one or more limited partners. A limited partner is a partner, whose personal liability for partnership debts is limited to the amount of money or other property that the partner contributed to the partnership. These pass-through entities are disregarded for federal income tax purposes with their income and losses "passed through" to their owners, as if they were a general partnership. However, they are not disregarded for purposes of Tennessee franchise and excise taxes, except for limited liability companies whose single member is a corporation filing in the state.

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Limited Liability Partnership (LLP), Professional Limited Liability Partnership, and Real Estate Limited Liability Partnership

A limited liability partnership (LLP) formed under a state limited liability partnership law; partners are not generally liable for the debts of the LLP or any other partner.

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Limited Liability Company (LLC) and Professional Limited Liability Company (PLLC)

A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC. An LLC may be classified for federal income tax purposes as a partnership, a corporation, or an entity disregarded as an entity separate from its owner. A professional limited liability company is formed under a state professional limited liability company law and is a company engaged in the rendering of professional services.

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Single Member Limited Liability Company

A limited liability company having only one member that cannot be treated as a partnership. A single member limited liability company whose single member is a corporation filing in Tennessee is disregarded for purposes of Tennessee franchise and excise taxes.

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Federal Employer Identification Number (FEIN)

You must have a Federal Employer Identification Number (FEIN) if your business is a partnership or corporation, or if you pay wages to anyone other than yourself. If your business is a sole proprietorship or a general partnership, your Social Security number will also be your business entity identification number. Sole proprietorships and general partnerships are not liable for franchise and excise taxes.

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Secretary of State (SOS)

This six-digit number is assigned sequentially by the Secretary of State when a company registers to do business in Tennessee.

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Social Security Number (SSN)

If your business is a sole proprietorship or a general partnership, your Social Security number (SSN) will also be your business entity identification number. Sole proprietorships and general partnerships are not liable for franchise and excise taxes. A Federal Employer Identification Number (FEIN) is required if your business is a corporation, limited liability company, limited liability partnership, limited partnership, or if you do not pay wages to anyone other than yourself.

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Register a New Business

This online service does not register taxpayers for all taxes, fees, or permits. You must complete one application for each business location that you own.
You will receive a certificate of registration, certificate of exemption or permit for each location within a few days after submitting this form online. The certificate or permit must be publicly displayed at the location for which it is issued. The certification of exemption must be presented when purchasing tangible personal property that is to be used, consumed or given away by the exempt organization. If you must register your business with the county your business is located, you must contact the county itself.

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Add a New Location to an Existing Business in Tennessee

This online application does not register taxpayers for all taxes, fees, or permits. You must complete one application for each business location that you own.
You will receive a certificate of registration, certificate of exemption or permit for each location within a few days after submitting this form online. The certificate or permit must be publicly displayed at the location for which it is issued. The certification of exemption must be presented when purchasing tangible personal property that is to be used, consumed or given away by the exempt organization. If you must register your business with the county your business is located, you must contact the county itself.

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Change the Business Address

You must have the business account number to change your business address using this service.

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Change the Business Ownership

You must notify the Department of Revenue if the business ownership changes in any manner. This change could be selling or closing the business, adding or changing partners, transferring or changing the ownership of the business, or changing corporate structure requiring a new charter or certificate of authority. If any of the changes mentioned should occur, answer the questions on the back of the business's Certificate of Registration and mail it to the Department of Revenue. You must close your account and the new owners or officers, if applicable, must then apply for a new Certificate of Registration.

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Close an Account

Most account closures can be handled over the telephone with a representative of the Department of Revenue. All closures will require that the business have filed a final return and remittance of all taxes for which you are registered. Furthermore, if the taxpayer has been issued a license or permit, these must be surrendered and will be revoked by the department. If you have posted a bond of any type against your tax account, the bond must remain posted until all outstanding liabilities are settled.

Under Tennessee Law and Department of Revenue Rules, there are some additional specific actions that must be taken for certain taxes. Contact the Department of Revenue for specific instructions when closing your account.

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Account Number

Upon registration, your business is assigned a unique 9-digit account number for each specific tax account for which you register. You should refer to this account number on all correspondence with the department. If you do not know your account, you must call the department at (615) 253-0600 or (800) 342-1003 if calling in Tennessee outside the Nashville calling area.

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Accounting Period Ends In

The accounting period is based on the taxpayer's fiscal year end.

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What is a Primary Address?

The primary address of your business is the location at which the main administrative office, the company records and files, and the company's primary financial operations are found.

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What is an Exact Location Address?

The exact location address of your business is the address of the exact physical site where your business activity is conducted and where your customers would come to conduct business with you. The exact location address cannot be a post office box number.

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What is a Mailing Address?

Your mailing address is the location where your business receives its mail and other correspondence. This address can be a post office box number or any other address where your business mail is delivered.

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Authorized Representative

An authorized representative of your business is any individual who is able to make decisions affecting your business activity. Authorized representatives must be listed on the registration application or must possess a valid written power of attorney in order to discuss any activity related to your business with the Department of Revenue.

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Effective Date

When you close an account or change an account address, you will be asked for the date the change or closure should go into effect. The effective date can be up to 90 days in advance.

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