Does your business sell products to customers in Pennsylvania and not collect sales tax? Watch out for these new rules!

The SALT Shaker

The state has expanded the rules for determining when a remote seller must collect Pennsylvania sales tax. The expanded rules cover activities such as the following:

  • A remote seller utilizing agents located in Pennsylvania who will provide repair, delivery or other service relating to tangible personal property sold by the remote seller to Pennsylvania customers.
  • A remote seller who accepts orders that are directly shipped to Pennsylvania customers from a Pennsylvania facility which is operated by a remote seller’s vendor (drop shipment).
  • A remote seller who regularly solicits orders from Pennsylvania customers via the website of an entity or individual physically located in Pennsylvania, such as via click-through technology.
  • A remote seller’s employee(s) regularly travel(s) to Pennsylvania for any purpose related to the remote seller’s business activity.
  • A remote seller who has a contractual relationship with an entity or individual physically located in Pennsylvania whose website has a link that encourages purchasers to place orders with the remote sellers.

We suggest that you review your Pennsylvania activities in light of this new guidance. The KatzAbosch SALT Group can help you determine your risk for not collecting Pennsylvania sales tax. Please contact Andy Bareham if you have any questions about sales tax requirements.

The SALT Shaker is prepared by Andy Bareham, Chair of the KatzAbosch SALT Group

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