Pennsylvania Codifies Economic and Marketplace Nexus Provisions, Repeals Notice and Reporting Option

Effective July 1, 2019, Pennsylvania has enacted legislation that codifies the economic and marketplace nexus provisions previously announced in Sales and Use Tax Bulletin 2019-01. The new legislation also eliminates the option to either collect and remit Pennsylvania sales tax or comply with notice and reporting requirements. All marketplace facilitators and online sellers who exceed the $100,000 threshold must register, collect and remit Pennsylvania sales tax effective July 1, 2019. Electing to provide notices to Pennsylvania customers is no longer an option. The Pennsylvania Department of Revenue (DOR) has provided additional information on their website. When calculating the amount of sales into Pennsylvania, sales includes the gross amount on all channels, including taxable and nontaxable sales. Sellers who do not have physical presence in Pennsylvania can use an approved Certified Service Provider (CSP) to report and remit tax to the DOR. The CSP who have contracted with Pennsylvania are Accurate Tax, Avalara, Sovos, and TaxCloud. If a seller chooses to use a CSP, they are not required to obtain a PA sales tax license or file returns. (Act. No. 13 (H.B. 262), Laws 2019; Online Retailers Selling Goods and Services to Pennsylvania Customers, Pennsylvania Department of Revenue, July 2019)

Posted on July 29, 2019