Reed Smith Client Alerts

By March 1, 2018, certain marketplace facilitators, remote sellers and referrers must make an election to (1) comply with Pennsylvania’s new sales tax notice and reporting requirements or (2) collect and remit sales tax on sales to Pennsylvania customers. The election becomes effective for sales made on and after April 1, 2018. In anticipation of this deadline, the Pennsylvania Department of Revenue released guidance on its website. Taxpayers subject to the new law should carefully consider the compliance burdens and penalty implications before making an election.

Authors: Lee A. Zoeller Jonathan E. Maddison Sebastian C. Watt

On October 30, 2017, Governor Tom Wolf signed House Bill 542 into law, making Pennsylvania the fourth state to impose sales tax collection or reporting obligations on platforms (e.g., ebay.com, Amazon.com).1 The law imposes tax collection or reporting obligations on marketplace facilitators and on remote sellers who have no physical presence in Pennsylvania. The law reaches only those marketplace facilitators and remote sellers who facilitate or make annual sales over $10,000 into Pennsylvania. If your business is making sales into Pennsylvania, you need to consider whether your business is subject to the law, and if so, what it needs to do before March 1, 2018, to be prepared to comply with the law by April 1, 2018.2