Pennsylvania Pennsylvania Sales and Use Tax Brochure

Pennsylvania Sales and Use Tax Brochure
Brochure: Pennsylvania Sales and Use Tax (REV-585)
For general tax questions:
How would i be notified of a violation of the law?
If the offender is an existing business that was
denied a license or had its license revoked,
the business will be contacted by the department in
person or in writing, in an effort to resolve the tax
delinquencies. If that effort fails, the offender
would then be directed to surrender its license.
A business that refuses to surrender its
license may be charged with operating without
a valid sales tax license.
if my sales tax license is revoked/expired
can i continue to sell non-taxable items that
do not require the collection of sales tax?
A company engaged in business other than the sale
or rental of taxable merchandise or services may
continue to do so without a sales tax license.
However, making any taxable items available for
purchase without a valid sales tax license is a
summary offense, and the business may be cited
by the department.
if i am current with my sales tax returns
and payments but have other tax liabilities,
can my sales tax license be revoked?
Yes. Other tax liabilities (employer withholding,
corporate taxes, personal income tax, etc.) can
result in revocation or denial of a sales tax license.
What can i do to have a revoked license
reinstated?
Before a license is reinstated, the business must file
all non-filed tax returns, pay any outstanding
liabilities or enter into a payment plan arrangement
with the department. Once a delinquency is
resolved, the license may be reinstated.

Online Customer Service Center
www.revenue.pa.gov

PennsYlVania
sales anD use tax

Taxpayer Service & Information Center
Personal Taxes: 717-787-8201
Business Taxes: 717-787-1064
e-Business Center: 717-783-6277
1-888-PATAXES (728-2937)
Touch-tone service is required for this
toll-free call. Call to order forms or check
the status of a personal income tax account,
corporation tax account or property tax and
rent rebate.
Automated Forms Ordering Service
1-800-362-2050
Services for Taxpayers with Special Hearing
and/or Speaking Needs
1-800-447-3020
Call or visit the Revenue district office
nearest you, listed in the government pages of
your local phone directory.

All individuals and businesses that make
taxable sales or rentals or provide taxable
services must be licensed to operate in
Pennsylvania and must regularly report
and remit sales tax to the Department of
Revenue.

if i am convicted of violating the sales
tax law, can i still be charged with theft,
tax evasion or similar offenses?
Yes. The sales tax law only addresses operating
without a valid sales tax license. It does not address
other criminal offenses, such as misdemeanor or
felony charges.

www.revenue.pa.gov

REV-585 PO (04-15)

How do i register to collect and remit sales tax?
All businesses and individuals selling products
and services subject to sales tax must register
for a sales tax license online at
www.pabizonline.com or by completing the
PA Enterprise Registration Form, PA-100.
The form is available at www.revenue.pa.gov
and from Revenue’s Forms Ordering Service,
1-800-362-2050. The sales tax license, which
must be renewed every five years, should be
prominently displayed at the business's location.
Pennsylvania's sales tax rate is 6 percent, and an
additional 1 percent local sales tax applies to
items purchased or used in Allegheny County.
Two percent local tax applies to items purchased
or used in Philadelphia. Prior to Oct. 8, 2009,
the Philadelphia local tax was 1 percent.
Do i need a sales tax license to sell taxable
items at a craft show or similar place?
Yes. Out-of-state vendors should review brochure
REV-778, PA Tax Obligations for Out-of-State
Vendors, for information on transient vendor
licenses.

the previous quarter. After the first year, the
department dictates a semi-monthly, monthly,
quarterly or semi-annual filing schedule, based on
how much sales tax a company collects.
How do i report sales tax?
Sales tax returns and payments must be filed
electronically – online or by telephone. After
registering, a business will be able to file returns
and payments online through e-TIDES at
www.etides.state.pa.us. Businesses may also
file and remit sales tax using the business
TeleFile phone system at 1-800-748-8299.
Can i start doing business and collecting tax
before i receive my license?
Yes. Having the license physically in your
possession is not necessary to make taxable sales
or provide taxable services. Keep records of how
much tax was collected and remit that tax in a
timely manner. A copy of the sales tax license
(or PA-100 or four-digit Web registration PIN if the
license has not been received yet) should be
prominently displayed at the business's location.

Can a promoter who allows an unlicensed
vendor to operate at a show be charged with
violation of the law?
No. While a promoter may face revocation of
his/her promoter’s license for failing to ensure
compliance with licensing requirements, it is the
individual vendor of taxable merchandise or
services who is responsible and would face
prosecution.

How do i know what items or services are
subject to Pennsylvania sales tax?
The department’s Retailers’ Information Guide
(REV-717) contains listings of most taxable and
non-taxable items and descriptions of taxable
services. It can be downloaded from the
department’s website or requested through
the department’s Forms Ordering Service.
This publication is updated every three years.

i am having a yard sale.
should i apply for a license?
If your yard sale qualifies as an isolated sale,
you do not need a license or to collect sales tax.
An isolated sale is an infrequent sale of tangible
property by someone who is not in the business
of selling that property and does not hold
reoccurring sales more frequently than three times
a year or for more than seven days total in a year.

What is included in the purchase price of an item?
The purchase price includes the total value of the
items delivered or services provided, including such
costs as insurance, delivery, shipping and handling.
These charges are taxable even if they are listed
separately on an invoice.

How often do i need to remit sales tax?
All new businesses must file quarterly returns
during the first year of business. Returns are due
by the 20th of the month following the close of

Why must i file a return for a period during
which i collected no tax?
All license holders must file returns even for periods
when no taxable sales were made. Such “zero
returns” enable the department to distinguish
between businesses that made no taxable sales and
those that collected taxes and failed to remit them.
www.revenue.pa.gov

When is labor subject to sales tax?
Fees for labor are taxed when the labor is
expended on a taxable item. For example, repairs
to a vehicle, appliance or jewelry are taxable.
Labor charges to install or repair items that become
part of real estate – such as repairs to a water
heater, boiler or new roof – are not taxable.
How do i apply for a sales tax exemption?
Certain charitable, religious and nonprofit
organizations and volunteer fire companies qualify
for sales tax exemptions. Such an organization
must complete the Sales Tax Exemption
Application (REV-72) to apply and provide its
Articles of Incorporation or bylaws and current
financial statement.
What is use tax?
Use tax is the counterpart of sales tax and applies
to purchases made over the Internet, through
toll-free numbers (800, 888, 877), from mail-order
catalogs and from out-of-state locations when sales
tax was not charged and collected by the seller.
The use tax rate is the same as the sales tax
rate: 6 percent state tax, plus an additional
1 percent local tax for items purchased or used in
Allegheny County and 2 percent local tax for
Philadelphia. Use tax liabilities incurred by
individual taxpayers can be reported annually
on the PA Personal Income Tax Return (PA-40)
or shortly following the time of purchase using
a Use Tax Return (PA-1). Sales tax licensees should
report and pay use tax through e-TIDES or the
TeleFile phone system. Non-licensed, business
taxpayers should remit use tax using a Use Tax Return
(PA-1). Visit www.revenue.pa.gov/usetax for
more information on use tax reporting
responsibilities and options.
What are the criminal penalties for violating
the sales tax law?
The department has the authority to issue citations
to people who, without a valid PA sales tax license,
sell or lease items subject to sales tax. Operating
without a sales tax license or with a revoked license
could result in a conviction of a summary offense and
a fine between $300 and $1,500 for each offense.