NASHVILLE - Tennessee businesses often have customers who wish to make purchases free from sales tax, either because they intend to resell the items they are purchasing or because they are making purchases for nonprofit organizations or for agricultural purposes. These businesses now have a new tool to help determine the validity of exemption certificates presented to them by their customers.
The Tennessee Department of Revenue now offers an online search at its website, TN.gov/revenue, to verify the status of exemption certificates. Businesses using this service can ensure the entity making the purchase is qualified to be exempt from sales tax on the transaction before the sale is completed.
The use of this service allows business owners to simply type the account number and select the type of exemption certificate being presented. The search result shows whether the certificate is valid or invalid. This verification does not relieve the vendor of the responsibility of maintaining a copy of valid exemption certificates on file. This search also does not reveal any details about the business, protecting each business’ privacy as required under Tennessee law.