IF YOUR BUSINESS CONDUCTS INTERNET OR WEB-BASED SALES

Marketplace Sales: Sellers of products on the internet not maintaining a place of business in the Commonwealth of PA and not collecting PA sales tax on sales to PA businesses, making sales of at least $10,000 into PA in the previous calendar year, were required to file an election by March 1, 2018 opting either to begin to collect sales and use tax by April 1, or commit to sending use tax notices with each sale. Additionally, sellers sending notices must also send an annual summary of purchases both to the customer and to the PA Department of Revenue.

Affected entities are: marketplace facilitators, persons who list or advertise property for sale in any forum and who either directly or indirectly collect the payment from the purchaser and transmit the payment to the person selling the property; remote sellers, persons that do not maintain a place of business in PA and sell at retail into PA; and referrers, persons who provide a forum for interaction between buyers and sellers but do not directly participate in the sale. Marketplace facilitators and referrers are required to file an election on behalf of all the sellers participating in their system. If the election is made to collect sales tax, then the marketplace facilitator or referrer is required to collect and remit sales tax on all of its taxable marketplace sales from sellers that do not maintain a place of business in PA

For those opting to collect sales tax, the new provisions required collection to begin by April 1, 2018 for tangible personal property. The effective date was delayed until April 1, 2019 for digital goods such as electronic copies of books, canned software, music and similar items.