Professional services are generally not taxable in Tennessee. However, some computer services are. If an IT consultant installs or 'loads' software in the state, that service is subject to sales tax.
The sales tax is comprised of two parts, a state portion and a local portion. The general state tax rate is 7%. The local tax rate varies by county and/or city. Please click on the links to the left for more information about tax rates, registration and filing.
Tax-exempt items in Tennessee include prescription medications, certain medical devices, groceries (taxed at a reduced rate), and goods purchased for resale with a valid resale certificate.
Sourcing sales tax in Tennessee: which rate to collect As of May 2019, Tennessee is an origin-based state. This means you're responsible for applying the sales tax rate determined by the ship-from address on all taxable sales.
States with lower income or property taxes may rely more heavily on sales taxes to balance their budgets. This is why states like Tennessee and Louisiana have high sales tax rates, while others with high income taxes, such as New York, may have lower state-level sales tax rates.
Since Tennessee is an origin-based sales tax state, this means intrastate sales (sales from a seller to a buyer both in Tennessee) are considered to take place at the seller's location. This might be your home, warehouse, store, distribution store or other location.
The consignment note acts as a legal contract between the shipper, the carrier and the consignee, setting out the terms and conditions of carriage. This includes details on the type of goods, the place of pickup and delivery, and any special instructions for the shipment.
Some types of product are commonly sold through consignment. These include clothing, athletic equipment, furniture, musical instruments, art, and jewelry. For example, an artist might have five large pieces of artwork to sell but has no place to showcase the work for prospective buyers.
A document that shows the details of goods that have been sent from a seller to a buyer, and that travels with the goods: rail/air/road consignment note. See also.
A document that shows the details of goods that have been sent from a seller to a buyer, and that travels with the goods: rail/air/road consignment note. See also. bill of lading.