Form Rev-585 - Pennsylvania Sales And Use Tax (Page 2 of 2) in pdf

between businesses that made no taxable sales and

How do I register to collect and remit sales

the 20th of the month following the close of the

those that collected taxes and failed to remit them.

tax?

previous quarter. After the first year, the

department dictates a semi-monthly, monthly,

All businesses and individuals selling products

When is labor subject to sales tax?

quarterly or semi-annual filing schedule, based on

and services subject to sales tax must register

how much sales tax a company collects.

Fees for labor are taxed when the labor is expended

for

sales

tax

license

online

on a taxable item.

For example,

repairs to a

or by completing

How do I report sales tax?

vehicle, appliance or jewelry are taxable. Labor

the PA Enterprise Registration Form, PA-100. The

charges to install or repair items that become part

Sales tax returns and payments must be filed

form is available at

of real estate – such as repairs to a water heater,

electronically – online or by telephone. After

and from Revenue’s Forms Ordering Service,

boiler or new roof – are not taxable.

registering, a business will be able to file returns

1-800-362-2050. The sales tax license, which must

be renewed every five years, should be prominently

and

payments

online

through

e-TIDES

How do I apply for a sales tax exemption?

displayed at the business's location.

Businesses may also file

and remit sales tax using the business TeleFile

Certain

charitable,

religious

and

nonprofit

Pennsylvania's sales tax rate is 6 percent, and an

phone system at 1-800-748-8299.

organizations and volunteer fire companies qualify

additional 1 percent local sales tax applies to items

for sales tax exemptions. Such an organization

purchased or used in Allegheny County. Two

Can I start doing business and collecting tax

must complete the Sales Tax Exemption Application

percent local tax applies to items purchased or used

before I receive my license?

(REV-72) to apply and provide its Articles of

in Philadelphia. Prior to Oct. 8, 2009, the

Yes. Having the license physically in your

Incorporation or bylaws and current financial

Philadelphia local tax was 1 percent.

possession is not necessary to make taxable sales

statement.

or provide taxable services. Keep records of how

Do I need a sales tax license to sell taxable

much tax was collected and remit that tax in a

What is use tax?

items at a craft show or similar place?

timely manner. A copy of the sales tax license (or

Use tax is the counterpart of sales tax and applies to

Yes. Out-of-state vendors should review brochure

PA-100 or four-digit Web registration PIN if the

purchases made over the Internet, through toll-free

REV-778, PA Tax Obligations for Out-of-State

license has not been received yet) should be

numbers (800, 888, 877), from mail-order catalogs

Vendors, for information on transient vendor

prominently displayed at the business's location.

and from out-of-state locations when sales tax was

licenses.

not charged and collected by the seller. The use tax

How do I know what items or services are

rate is the same as the sales tax rate: 6 percent

Can a promoter who allows an unlicensed

subject to Pennsylvania sales tax?

state tax, plus an additional 1 percent local tax for

vendor to operate at a show be charged with

The department’s Retailers’ Information Guide

violation of the law?

items purchased or used in Allegheny County and 2

(REV-717) contains listings of most taxable and

percent local tax for Philadelphia. Use tax liabilities

No. While a promoter may face revocation of

non-taxable items and descriptions of taxable

incurred by individual taxpayers can be reported

his/her promoter’s license for failing to ensure

services. It can be downloaded from the

annually on the PA Personal Income Tax Return

compliance with licensing requirements, it is the

department’s website or requested through the

(PA-40) or shortly following the time of purchase

individual vendor of taxable merchandise or

department’s Forms Ordering Service. This

using a Use Tax Return (PA-1). Sales tax licensees

services who is responsible and would face

publication is updated every three years.

should report and pay use tax through e-TIDES or the

prosecution.

TeleFile phone system. Non-licensed, business

What is included in the purchase price of an

taxpayers should remit use tax using a Use Tax Return

I am having a yard sale. Should I apply for a

item?

(PA-1). Visit /usetax

license?

for more information on use tax reporting

The purchase price includes the total value of the

If your yard sale qualifies as an isolated sale, you

responsibilities and options.

items delivered or services provided, including such

do not need a license or to collect sales tax. An

costs as insurance, delivery, shipping and handling.

isolated sale is an infrequent sale of tangible

What are the criminal penalties for violating

These charges are taxable even if they are listed

property by someone who is not in the business of

the sales tax law?

separately on an invoice.

selling that property and does not hold reoccurring

The department has the authority to issue citations

sales more frequently than three times a year or for

Why must I file a return for a period during

to people who, without a valid PA sales tax license,

more than seven days total in a year.

which I collected no tax?

sell or lease items subject to sales tax. Operating

How often do I need to remit sales tax?

All license holders must file returns even for periods

without a sales tax license or with a revoked license

when no taxable sales were made. Such “zero

could result in a conviction of a summary offense and

All new businesses must file quarterly returns

during the first year of business. Returns are due by

returns” enable the department to distinguish

a fine between $300 and $1,500 for each offense.

Form Rev-585 - Pennsylvania Sales And Use Tax Page 2

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