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Reminder: Sales and Use Tax – Pennsylvania Adopts Economic Nexus 7/1/19

The changes to sales tax economic nexus for Pennsylvania are effective July 1, 2019. Remote sellers and marketplace facilitators that do not have a physical presence in PA must collect PA sales tax if they made over $100,000 in gross PA sales across all platforms in the previous 12 months.

Using Calendar Years to Determine Economic Nexus & Collection Periods

–           calendar year 2018 sales -> collection period 7/1/19-3/31/20

–           calendar year 2019 sales -> collection period 4/1/20-3/21/21

The Annual Marketplace Sales Election between collection/remittance and notice/reporting still applies to remote sellers and marketplace facilitators who do not have a physical presence in PA and made sales of at least $10,000 but less than $100,000 in the last 12 months.

How will this impact me?

The new law impacts sellers outside of Pennsylvania, who would not have had previous filing requirements. If you feel that your business may be impacted by the new sales tax economic nexus changes in PA, please reach out to Stephano Slack. We can help facilitate sales tax compliance, such as tax return filings and determining products that are subject to PA sales tax, or whether your business may have tax exposure in other states.

June 18, 2019