Pennsylvania Collect or Report Deadline for Marketplace Sales
Thursday, March 1st, 2018
The Pennsylvania Department of Revenue (DOR) released a notice for all remote sellers, marketplace sellers, marketplace facilitators, and referrers required to elect to either (1) register to collect tax or (2) comply with the state's notice and reporting requirements. These businesses have until March 1, 2018 to make an election, and they must begin either collecting tax or complying with notice and reporting requirements on April 1, 2018.
Businesses that elect to comply with the notice and reporting requirements (instead of collecting tax) must (1)) post a notice on their websites informing customers that tax may be due on items purchased from sellers outside the state; (2) provide written notice to each customer at the time of sale that includes (a) a statement that sales tax Is not being collected in connection with the purchase, (b) a statement that the purchaser may be required to pay use tax directly to the DOR, and (c) instructions for additional information from DOR about paying use tax. These businesses are also required to provide annual reports to (1) their customers listing the purchases where no tax was collected and (2) the DOR listing each customer's information and total dollar amount of purchases from that seller.
To make an election, businesses should use Form REV-1830: Annual Marketplace Sales Election Form. If no election is made, the business is considered to have elected to comply with the notice and reporting requirements.
A "remote seller" does not maintain a place of business in Pennsylvania, but makes sales directly to individuals and businesses in Pennsylvania.
A "marketplace seller" has a contract with a marketplace facilitator where the facilitator agrees to list or advertise the seller's products, collect payments from customers, and send the payments back to the seller.
A "marketplace facilitator" contracts with marketplace sellers to list or advertise the sellers' products for sale through a marketplace. The facilitator directly or indirectly collects the payment from the purchaser, and sends the payment to the marketplace seller.
A "referrer" receives a commission, fee, or other form of payment from a seller for listing or advertising the seller's products and directs the purchaser to the seller's website. A referrer does not collect payment from the buyer. Referrers do not include businesses that print or publish newspapers or provide internet advertising services, unless it provides (1) the seller's shipping terms and (2) whether the seller charges sales tax.
Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.
TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.
TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.
Please visit TTR on the web at www.ttrus.com or call 866.578.8193.
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