If we sell music online to clients in Tennessee, should we be collecting sales tax? It seems that we should be if we have nexus.

ANSWER

The BIDaWIZ Team's Answer:

Tennessee is one of a number of states that adopted the Streamlined Sales Tax (SST) model for applying sales tax. Consistent with other states that follow this model, digital music and other digital goods are subject to both state sales and use tax. Thus, you should be collecting sales tax when you have Nexus in Tennessee. If you do not have nexus, the client must remit use tax to the state.

References: Tennessee Code Ann. Section 67-6-102
State: Tennessee
Sales tax category: Product Taxability
Product/Service: Digital Music