The Tennessee Department of Revenue has unveiled an online service to assist businesses to verify the status of resale and exemption certificates presented to them by their customers.
According to the Department, Tennessee businesses often have customers who wish to make purchases free from state sales taxes, either because they intend to resell the items being purchased, the purchase is by a nonprofit organization or the purchase is for agricultural purposes.
The use of this new online service will allow businesses to ensure that the certificates of resale, nonprofit exemption certificates and agricultural exemption certificates are valid and that the entity making the purchase is qualified to be exempt from state sales tax on the purchase before the sale is completed.
The business owner simply types in the account number on the certificate and selects the type of exemption certificate being presented. The search results will show whether such certificate is valid or invalid. Use of this online service does not relieve businesses of the responsibility for maintaining a copy of such resale or exemption certificate.