How does a taxpayer determine if it is a wholesaler or a retailer?

Whether a taxpayer is a wholesaler or a retailer for business tax purposes is determined annually based on whether the taxpayer is primarily engaged in making retail sales or wholesale sales. If more than fifty percent (50%) of the taxpayers sales for the tax year consist of wholesale sales, the taxpayer is classified as a wholesaler. If fifty percent (50%) or more of the taxpayers sales for the tax year consist of retail sales, the taxpayer is classified as a retailer.

Retail sale and wholesale sale are defined by Tenn. Code Ann. 67-4-702 (15) & (23).

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