Services offered:
|
Sales and Use Tax Appeals
Tax is to be collected on the full purchase price without any deduction on account of the cost of labor, shipping, handling, delivery, or installation. Separately stated charges for returnable containers are not subject to tax.
If the purchase price is more than $10, 6 percent (6%) state Sales Tax and/or one percent (1%) local Sales Tax of each dollar, plus the above bracket charges, upon any fractional part of a dollar must be collected.
Use Tax
If you or your business buys items that are subject to Sales Tax, for which the seller does not charge and collect the tax on the invoice (or receipt), you are personally responsible for remitting the tax directly to the PA Department of Revenue. This tax is called USE TAX.
Purchases made over the Internet, through toll-free numbers (800, 888, and 877), from mail order catalogs, or from an out-of-state location are examples of purchases that would be subject to USE TAX if Sales Tax was not paid. The tax rate is the same as the Sales Tax, 6 percent state, and 1 percent local tax, if the purchaser is located in Philadelphia or Allegheny County.
Pennsylvania statutes generally exclude from Sales and Use Tax items such as clothing; most foods purchased from a grocery store and prescription medicines. Examples of taxable items include: computers, sports and recreational equipment, and formal clothing. See the www.revenue.state.pa.us for a list of taxable items.
Pennsylvania first imposed the Use Tax in 1953. All states that imposed a Sales Tax also impose Use Tax. All businesses and individuals who incur Use Tax liability have an obligation to file and pay the tax in a timely manner.
Purchases made over the Internet, through toll-free numbers (800,888, 866 and 877), from mail order catalogs, or from an out-of-state location are examples of purchases that would be subject to Use Tax if Sales Tax was not paid. Pennsylvania statues generally exclude from Sales and Use Tax items such as clothing; most foods purchased from a grocery store and prescription medicines. Examples of taxable items include: computers, sports and recreational equipment and formal clothing. See REV-717 (Retailers’ Information Guide) for a list of taxable items.
If you or your business buys items that are subject to Sales Tax, for which the seller does not charge and collect the tax on the invoice (or receipt), you are personally responsible for remitting the tax directly to the PA Department of Revenue. Tax is collected on the full purchase price without deduction of charges for labor, shipping, handling, delivery, or installation. Separately stated charges for returnable containers are not subject to tax.
What is the Sales Tax rate and when do licensees collect local Sales Tax?
The state Sales Tax rate is 6 percent of the taxable purchase price of property and services provided in a Pennsylvania location. Local Sales Tax of 1 percent of the purchase price is collected on sales by vendors located in Philadelphia and Allegheny counties. Tax is not due on sales from Philadelphia and Allegheny counties if the taxable items are delivered to an out-of-state location.
There is a special provision for motor vehicles, which provides that the local tax is charged on motor vehicles that are registered to addresses in Philadelphia and Allegheny counties, even if it is purchased outside the county.