Monday, December 03, 2018

Pennsylvania Tax Obligations for Out-Of-State Vendors

Article from Pennsylvania Department of Revenue

Any entity making taxable sales or performing taxable services in Pennsylvania must be licensed to collect and remit sales tax.

Pennsylvania’s sales and use tax rate is 6 percent. An additional 1 percent local sales and use tax applies to sales in Allegheny County; an additional 2 percent local sales and use tax applies to sales in Philadelphia.

 No tax is due on out-of-state deliveries made by a vendor or common carrier. However, deliveries made within Pennsylvania are subject to sales tax.

 Any business that does not have a permanent physical location in Pennsylvania, but makes taxable sales in Pennsylvania on an irregular basis, is required to register for a transient vendor’s license. Transient vendor licenses are renewable on a yearly basis so long as the taxpayer timely files and remits all sales tax.

 All other out-of-state vendors, making taxable sales in Pennsylvania, are issued sales tax licenses, valid for five years and renewable so long as the taxpayer timely files and remits all state taxes. Sales and transient vendor licenses must be prominently displayed at all events.

Department of Revenue enforcement agents have the authority to issue citations to people who sell items subject to Pennsylvania sales tax without valid sales tax licenses. Penalties for making such sales may include a fine between $300 and $1,500 for each violation and imprisonment up to 30 days for failing to pay the fine

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