Tennessee – Imaged Invoices are Acceptable Records

SALT Report 1183 – The Tennessee Department of Revenue has ruled that they will accept, “imaged invoices that are maintained in an electronic storage system that preserves document legibility and integrity, in lieu of hard copy invoices.”

With respect to Tennessee sales and use tax, Tennessee Code § 67-6-523 (2006) imposes various recordkeeping requirements on dealers in Tennessee. In particular, Tennessee Code § 67-6-523(a) which requires every dealer “to keep and preserve suitable records of sales or purchases” that are subject to sales and use tax.  However, the sales tax statute did not address whether records may be maintained in an electronic format.  Therefore, the Department ruled that the absence of a requirement that records be maintained in a tangible format suggests that electronic records are acceptable.