Paying PA Sales Tax Online: A Step-by-Step Guide

Like the majority of US states, Pennsylvania levies a sales tax on the retail sale of certain types of services and tangible personal property. Pennsylvania’s statutory sales tax is 6%; however, certain localities may tack on an additional 1% or 2% tax on top of that. You must gather and send sales tax to the state of Pennsylvania if you own a company that sells taxable goods or services there. We’ll walk you through the online PA sales tax payment process in this post.

Step 1: Apply for a Pennsylvania Sales Tax License You must apply for a PA Sales Tax License before you may begin to collect and pay sales tax in Pennsylvania. Through the e-TIDES system of the Pennsylvania Department of Revenue, you can submit an online application for the license. You will need to supply basic information about your company, like your business name, address, and federal tax ID number, as part of the simple application process. Within 7 to 10 business days of registering, you will receive your sales tax license in the mail.

Determine Which Net Sales Are Taxable in Step 2

In Pennsylvania, sales tax does not apply to every transaction. Sales tax is often charged on the sale of tangible personal property, which includes items like furniture, electronics, and apparel. Some services, like cleaning and landscaping, are also subject to taxation. In Pennsylvania, not all services are, though. Professional services, such as legal or medical services, are an example of something that is typically excluded from sales tax. To find out what net sales are taxable, see the website of the Pennsylvania Department of Revenue or speak with a tax expert.

Calculate Your Sales Tax Liability in Step 3 You must compute your sales tax due once you have identified which net sales are subject to taxation. Although Pennsylvania’s sales tax is 6%, your locality may have a different rate. To determine your sales tax obligation, utilize the sales tax calculator provided by the Pennsylvania Department of Revenue. For the calculator to determine the entire amount of sales tax due, you will need to enter your total taxable sales as well as your tax rate.

Step 4: Online Sales Tax Payment and Filing You can file and pay your sales tax online using the Pennsylvania Department of Revenue’s e-TIDES system once you have determined your sales tax due. To access the “Sales, Use and Hotel Occupancy Tax” option, log into your account and choose that option. The total taxable sales, tax rate, and total amount of sales tax owed must all be entered after that. You can use a credit card, debit card, or electronic check to pay your sales tax. What Net Sales in Pennsylvania are Taxable? In Pennsylvania, sales tax is often charged on the sale of tangible personal property, which includes items like furniture, electronics, and clothing. Some services, like cleaning and landscaping, are also subject to taxation. In Pennsylvania, not all services are, though. Professional services, such as legal or medical services, are an example of something that is typically excluded from sales tax. How Much Does a Pennsylvania Business License Cost? Depending on the kind of business you operate, a PA business license might cost different amounts. For instance, a Retail License costs $100, while a Wholesale License costs $50. The website of the Pennsylvania Department of Revenue contains a comprehensive list of business license fees.

Cost of a Seller’s Permit in Pennsylvania There is no distinct Sellers Permit in Pennsylvania. Instead, you must obtain a PA Sales Tax License, which is necessary for companies who do business in the state and sell taxable goods or services. A Pennsylvania Sales Tax License can be obtained for free. In Pennsylvania, do I require a resale certificate? Yes, you might require a Resale Certificate if you’re a wholesaler or reseller in Pennsylvania. As long as you are buying the products to resell them, the Resale Certificate enables you to purchase them without paying sales tax. You need a PA Sales Tax License before you can get a Resale Certificate. Then, you can utilize the e-TIDES system of the Pennsylvania Department of Revenue to submit an application for a Resale Certificate.