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Department of Revenue COVID-19 Updates
Marketplace Sellers, Marketplace Facilitators & Out-of-State Dealers

Marketplace Sellers

A marketplace seller is a person who sells goods or services through a marketplace operated, owned, or controlled by a marketplace facilitator. Marketplace sellers that make any sales outside of a marketplace facilitator website or platform, such as through their own website or storefront, may be required to register for sales and use tax if they have a physical presence in the state or if they have made $100,000 or more in sales in the state during the previous 12-month period. Physical presence could include a storefront, employees, or operations located in Tennessee. An out-of-state marketplace seller is not required to register in Tennessee if all its taxable sales are made through a marketplace facilitator that is collecting and remitting Tennessee sales tax on the seller’s behalf.

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Marketplace Facilitators

Marketplace facilitators are businesses that own or operate a website or other platform where sales are made on behalf of marketplace sellers (i.e. third parties). Beginning on October 1, 2020, marketplace facilitators that make or facilitate more than $100,000 in sales to Tennessee customers in the previous 12-month period are required to collect and remit Tennessee sales tax. The sales tax is collected on sales made by marketplace sellers to Tennessee customers. Marketplace facilitators that do not have at least $100,000 in total sales in this state do not have a collection responsibility.

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Out-of-State Dealers

Currently, out-of-state dealers with no physical presence in Tennessee who make $100,000 or more in sales to Tennessee customers must register and collect Tennessee sales and use tax. The $100,000 threshold includes all retail sales made by the out-of-state dealer, including exempt sales, but does not include sales for resale.

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