Pennsylvania imposes various requirements on sellers doing business in Pennsylvania. We recommend that you go through the items below to help you with the most frequently asked questions concerning sellers and sales and use tax issues.
Procedure for accepting resale certificates. In Pennsylvania the state form entitled "Sales and Use Tax Exemption Certificate" is to be given to sellers by purchasers that will be reselling the goods purchased. If you are a vendor you may accept as a valid reason for exemption from sales tax a sale for resale even though the purchaser may not have a sales tax license number. In these instances, a statement must be attached to the Sales and Use Tax Exemption Certificate explaining why a sales tax license is not required. The statement must include a description of the type of business being conducted, and that the resale will not be made to the ultimate consumer.
Procedure for accepting blanket certificates. In Pennsylvania a purchaser may give a vendor a "blanket" resale certificate covering a series of transactions between purchaser and vendor. This blanket certificate will relieve the burden of executing a separate certificate for each individual tax-exempt purchase as long as there is no significant change in the operations.
Sales and use tax liability for out-of-state mail order and catalogue retailers. Pennsylvania has a statute that specifically taxes out-of-state mail order and catalogue sellers. However, you will be responsible for paying this tax only if you have physical presence within Pennsylvania. To determine if you have physical presence, ask yourself the following:
- Do I have retail facilities, a warehouse or any office space in Pennsylvania? Maintaining retail or warehouse facilities will give you physical presence. Also, having an office for employees, even for business activities unrelated to mail order sales, will give you physical presence.
- Do my employees or I enter Pennsylvania for purposes of taking and transmitting orders from Pennsylvania? If your employee or independent contractor goes into Pennsylvania to take or transmit orders your business may have physical presence in Pennsylvania. However, contracting with a common carrier to deliver mail order goods does not constitute physical presence.
- Do my delivery vehicles frequently enter Pennsylvania for purposes of delivering property? Frequent deliveries in Pennsylvania by your trucks will give you physical presence in Pennsylvania.
Sales tax "bracket system." The state of Pennsylvania has issued the following sales tax brackets:
| Amount of Sale |
Amount of Tax |
| $0.00 to $0.10 inclusive |
No tax |
| 0.11 to 0.17 inclusive |
0.01 |
| 0.18 to 0.34 inclusive |
0.02 |
| 0.35 to 0.50 inclusive |
0.03 |
| 0.51 to 0.67 inclusive |
0.04 |
| 0.68 to 0.84 inclusive |
0.05 |
| 0.85 to 1.00 inclusive |
0.06 |
If the purchase price is more than one dollar, the amount is 6 percent of each dollar of purchase price plus the above bracket charges upon any fractional part of a dollar.
Absorbing the tax — using a "no sales tax" advertising strategy to drum up business. In Pennsylvania if you are a seller you cannot advertise to any purchaser that the tax will be absorbed by you, the seller, or that it will not be added to the purchase price.
Claiming refund for excess tax payments. Pennsylvania will permit you, as a vendor, to make adjustments to sales tax for cancellations, returns, allowances and exchanges. As a vendor you may refund or credit your customer's account for sales tax in connection with the cancellation or adjustment of a sale. If the tax is not refunded by a vendor, the customer may apply for a refund directly to the department within three years of original purchase.