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Consumer Use Tax

Online and catalog sales are subject to use tax. This tax has been on the law books since 1947 and is the counterpart to the sales tax. When someone buys merchandise online or through a catalog and the seller of the merchandise does not collect sales tax, the consumer who bought the item has a legal obligation to file and pay use tax on the merchandise. The use tax is the same rate as the sales tax.

Purchasing merchandise outside of Tennessee, whether done physically or electronically, will not exempt someone from paying use tax if an equal amount of sales tax was not paid to another state at the time of purchase. Click here to learn more about how states share information about consumers' purchases.

So, how do you file and pay use tax? It's easy. Click here to download the return. Then follow the instructions, and complete and return with use tax payment to the department.

You can also file your Consumer Use Tax return online. Click here for more information.

Consumer Use Tax Frequently Asked Questions

New Reminder About Internet Retailers And Taxpayers’ Use Tax Obligation