Pallets Exempt in Tennessee When Used as Packaging, Not Transport

Wednesday, January 2nd, 2019

 
 
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Tennessee
General

The Tennessee Department of Revenue recently released a sales tax notice addressing pallets and the packaging exemption. Under this exemption, materials, containers, labels, sacks, bags, or bottles used to package tangible personal property are exempt in certain circumstances.

Pallets used for packaging are exempt when accompanying products sold directly to consumers or to sellers for resale, as long as the customer or seller is not billed separately for the pallets. This is true even if the pallet is returned following delivery of the product. It does not matter how the product is attached to the pallet.

However, pallets and shipping materials used only for transport - those that do not accompany a product for sale - are taxable. This includes air bags and braces used during transport to reduce shifting of the load.

ttrus.com/Pallets_Exempt_in_Tennessee


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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