Business Basics — Pennsylvania Sales Tax


Pennsylvania Sales Tax

In recent articles, we’ve highlighted some important factors to consider when starting your new business.  In this article, we will discuss Pennsylvania sales tax basics to help you get started in the right direction.

The very first thing to consider is whether you plan to sell products or provide services for which sales tax must be collected.  All Pennsylvania businesses who sell products and services subject to state sales tax are required to complete the Pennsylvania Enterprise Registration Form, regardless of the type of business entity you operate.

The Pennsylvania Enterprise Registration Form (PA-100) must be prominently displayed at the business.  The license itself is free, and may be renewed every five years.  Every business subject to sales tax must maintain a current license, or may be issued a citation by the Department of Revenue.  Penalties for non-compliance range from $300 to $1,500 per offense and/or imprisonment.

Once a business gets a sales tax license, the business must file regular tax reports and remit payments accordingly.  Failure to report in a timely manner may result in a citation, fine, and suspension or revocation of the license.

The tax report frequency for different businesses varies based on the total tax liability incurred during a given period of time.  Businesses with greater sales tax receipts must report and remit payments to the state more often.

Out-of-state vendors may also be subject to reporting requirements, so be sure to check your licensing, reporting and payment requirements before selling products or services in Pennsylvania.

For more information about starting a business, or for help with other matters related to managing your business, the attorneys at the Scolieri Law Group, P.C. can help.  Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can take care of the details for you every step of the way.  Contact us today at (412) 765-0546 or via email at info@scolierilaw.com.