Tenn. Comp. R. & Regs. 1320-05-01-.68 - RESALE CERTIFICATE
(1) Dealers shall
require certificates of resale for all tangible personal property sold or
services rendered in this State, for the purpose of resale, and such
certificates must be available at the establishment of the dealer for ready
inspection and comparison with the deductions claimed on monthly Sales and Use
Tax returns. A dealer duly registered under the provisions of the Sales Tax Act
and continually engaged in the business of selling tangible personal property
or taxable services at retail may present evidence to his wholesaler or
supplier as to his registration as a retailer, and shall not be required to
execute additional certificates of resale for individual purchases as long as
there is no change in the character of his operation, and the purchases are of
tangible personal property or taxable services of a sort usually purchased by
the purchaser for resale.
(2) All
sales for resale which are not supported by resale certificates properly
executed shall be deemed retail sales, and the dealer held liable for the tax
unless the same comes within the exception mentioned as a part of paragraph (1)
of this rule.
(3) Certificates of
resale may not be used to obtain tangible personal property or taxable services
to be used by the purchaser, and not for resale; such use shall be grounds for
the Commissioner to revoke the registration certificate of the dealer
wrongfully making use of such certificate of resale. In addition to this
penalty it is a misdemeanor to misuse the certificate of registration and
resale certificates for the purpose of obtaining tangible personal property or
taxable services without the payment of the Sales or Use Tax when it is
due.
(4) Provided, however, the
Commissioner may extend special written permission to a registered dealer to
make purchases for his own use under a certificate of resale, and to report
separately his tax liability to the Department under exceptional circumstances
or hardship upon the taxpayer. A certified or photostatic copy of such
permission shall be filed with the wholesaler or dealer. This special written
permission to remit the use tax shall in no wise alter or affect the test or
criteria for determination of whether a transaction is taxable in this
State.
Notes
Authority: T.C.A. ยงยง67-101, 67-3045,67-1-102, 67-6-409(b)(1), 67-6-102(13)(A) and 67-6-402.
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