Any business that sells goods or taxable services within the state of Pennsylvania to customers located in Pennsylvania is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in Pennsylvania must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Do you need to get a Sales Tax certificate in Pennsylvania State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in Pennsylvania
- You have a distribution location such as a storage area or warehouse space
- You have employees physically present in Pennsylvania (including independent contractors, sales persons, representatives, or agents)
- Your business delivers merchandise in the state of Pennsylvania
- Your business owns real or personal property
- Your business leases real property inside the state of Pennsylvania
- Your business has taxable services in the state of Pennsylvania
What constitutes taxable services in Pennsylvania State?
The majority of service businesses are not taxable in Pennsylvania. The exceptions would be service business that manufactures, repairing, or selling a product.
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Pennsylvania?
As a wholesale company conducting business in the state of Pennsylvania, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you need to collect sales tax on shipping and handling of merchandise?
If you sell tangible goods in Pennsylvania that are taxable than you would charge sales tax on shipping and handling charges.
Is there sales tax on drop shipments in the state of Pennsylvania?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Pennsylvania are required to have sales tax added.
Are there any exemptions to taxable items sold?
Certain specific medical devices, raw materials, newspapers and magazines, and custom downloadable software are tax exempt.
Register for a Pennsylvania sales/use tax number
Pennsylvania state, county, city, & municipal tax rate table