Tennessee Department of Revenue to Make New Wholesaler/Retailer Certificate Available in 2023
The Tennessee Department of Revenue recently issued Important Notice #22-04 regarding the availability of business tax wholesaler/retailer certificates to taxpayers.
The business tax rate for Classification 1-3 taxpayers depends on whether the taxpayer is a wholesaler or retailer. Generally, a taxpayer is a wholesaler and subject to the wholesale rate on all its taxable sales when at least 50% of its gross sales are to retailers for resale. A taxpayer is a retailer and subject to the retail rate on all its taxable sales when at least 50% of its gross sales are to consumers.
Effective Jan. 1, 2023, Public Chapter 683 (2022) requires the Department to make available to each taxpayer that files a business tax return a certificate that indicates whether the taxpayer filed a business tax return at the wholesale rate or the retail rate for each of a taxpayer’s locations. Certificates are valid for one year beginning on the original date of the taxpayer’s return and expiring on the due date of the taxpayer’s next return. Certificates will be made available annually to taxpayers through the TNTAP portal upon filing their business tax return and may be printed at any time.
Vendors may request the certificate from their customers to verify whether the customer filed business tax as a wholesaler or a retailer for a given location. Vendors that receive a certificate from a customer will not owe additional tax and will not receive a refund of tax based on a retroactive change in the customer’s status as a wholesaler or a retailer for the period covered by the certificate.
For more information, visit the Tennessee Department of Revenue website.