Pa use tax license

Major items exempt from the tax include food not ready-to-eat ; candy and gum; most clothing; textbooks; computer services; pharmaceutical drugs; sales for resale; and residential heating fuels such as oil, electricity, gas, coal and firewood.

The Pennsylvania sales tax rate is 6 percent. By law, a 1 percent local tax is added to purchases made in Allegheny County, and 2 percent local tax is added to purchases made in Philadelphia. See the Retailer's Information Guide REV or the more detailed Taxability Lists for a taxable items to review subjectivity to sales tax of goods and services.

A use tax , at the same rate as sales tax, is due on taxable purchases of tangible personal property or specified services used or consumed in Pennsylvania where no sales tax is paid to a vendor.

For example, the purchase may have been made out-of-state. The hotel occupancy tax, imposed at the same rate as sales tax, applies to room rental charges for periods of less than 30 days by the same person. In addition to hotels, the tax applies to rentals of rooms, apartments and houses arranged through online or third-party brokers. Be careful to check all of the appropriate boxes concerning the reactivation of your license and to also update any information about your business that may have changed from your original license.

Potential penalties for noncompliance with Pennsylvania sales tax license requirements can be quite severe and even include imprisonment of up to 30 days. For more information on how to get set up to collect and remit sales taxes in Pennsylvania, check out the Pennsylvania Department of Revenue's publication, Retailer's Information REV , which goes into all of the above information in much more detail.

Contents 2 min read. Freelance writer and editor Michelle Kaminsky, Esq. She earned a Juris Docto… Read more. Managing Your Business. Now that you've opened up shop, you'll need a seller's permit to collect taxes.

Let's take a look at what you need for a Pennsylvania seller's permit. Whether you're selling goods from a store or online, you need a seller's permit to keep the doors open.

When you form an LLC, you likely need to receive an income from the business. Here are several options available for setting regular payments to yourself. Whether you're setting up shop at the farmers market or the grand opening of a retail store, collecting sales tax is an important part of running your business.

The use tax rate is the same as the sales tax rate: 6 percent state tax, plus an additional 1 percent local tax for items purchased in delivered to or used in Allegheny County and 2 percent local tax for Philadelphia. For additional information on use tax and reporting and payment options, visit Use Tax for Individuals or Use Tax for Businesses.

For examples of when use tax is owed by trusts or fiduciaries, visit the Online Customer Service Center. Commonly Asked Questions.

You may be trying to access this site from a secured browser on the server. Please enable scripts and reload this page. Most businesses starting in Pennsylvania selling a product or offering certain services will need to register for a sales tax license. The sales tax license is obtained through the Pennsylvania Department of Revenue as a part of the Pennsylvania Enterprise Registration.

In addition to registering for sales taxes, this registration is used to register a new business and withholding taxes. Check out the rest of this guide to determine who needs a sales tax license, what products and services are taxable, how to register for a permit, and reporting requirements.

There are a few exceptions, but almost all physical products are taxable when sold at retail in Pennsylvania. Common examples include:. Sales tax would be added to the selling price of the new screen and any additional parts to fix the phone.

However, a business that makes furniture will indirectly have sales tax on labor. Through labor, the pieces of wood are shaped, sanded, and painted to build this piece of furniture. See the full list of taxable items in Pennsylvania. A sales tax license and account number can be obtained by registering online with the Pennsylvania Department of Revenue or by mailing PA Registration Form.

The sales tax license is renewable every five years. Be mindful that if any information about the business changes, such as the mailing address, additional locations, or change in ownership, those changes need to be updated with the Department of Revenue. A business can purchase items to resell without paying state sales tax.