What is TNTAP?

TNTAP is Tennessee's filing and payment system that allows businesses to file business tax returns and make immediate or warehoused tax payments online.

Collecting and remitting the right amount of sales tax is important if you have taxable sales in Tennessee, or even if your business has only a small presence there. To avoid penalties and interest charges, you must register with the state, collect the correct amount of sales tax from your buyers, file returns, and remit those collected taxes to the Department of Revenue. The Department of Revenue requires all businesses to file and pay their sales tax electronically. This is done through TNTAP, the Tennessee Taxpayer Access Point. First-time filers will have to register for an account, but after that, they’ll log in with their user ID and password to submit both sales tax returns and payments.

In Tennessee, sales tax is levied on tangible products (physical items) and some services. The state sales tax rate is 7%, and local governments can add to that rate with their own rates. Services that are taxable include repair, lodging services, carpentry, and lawn care services, while digital products such as e-books and software downloads are exempt from sales tax.

When collecting sales tax, be sure to consider charges for shipping, handling, delivery, freight, and postage. These types of charges may be taxable depending on whether the underlying sale is taxable or not and on the state of origin of the taxable product.

How Do I Register for TN Franchise and Excise Tax
What is TNTAP? 1

How Do I Register for TN Franchise and Excise Tax?

The state of Tennessee requires that all businesses register for business tax. Unlike sales tax, which is collected at the point of sale, the state collects franchise and excise taxes from entities that engage in certain business activities. Most of these activities require a license from the state, including many online sales. This type of business tax is also called a privilege tax and is usually based on the value of an entity’s assets, with depreciation being taken into account.

Most businesses engaged in retail or wholesale business must register for this tax, but there are some exemptions as well. In addition to registration, businesses must file the appropriate returns and remit the collected tax dollars on time. For example, if you have registered for sales tax, you must report your monthly or quarterly sales and remit the collected money to the state by a specific date.

The business tax filing requirements in Tennessee are quite complex. For example, the state separately taxes many federal disregarded or passthrough entities. These separately taxed entities have different nexus and apportionment factors than the upper-tier entities they own or control, which makes it especially important to keep meticulous records. Furthermore, the Tennessee Department of Revenue has an e-filing mandate for this tax, meaning all returns and payment documents must be filed electronically.

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