Reed Smith Client Alerts

On September 16, 2021, the Pennsylvania Department of Revenue issued Sales and Use Tax Bulletin 2021-03 (the “Bulletin”).1 In the Bulletin, the Department offers new guidance subjecting the purchase of remote help supply services to sales and use tax and, by doing so, expands the tax base of Pennsylvania’s sales and use tax.


In Pennsylvania, the purchase of help supply services is subject to sales and use tax.2 Help supply services are defined as “[p]roviding temporary or continuing help where the help supplied is on the payroll of the supplying person or entity, but is under the supervision of the individual or business to which help is furnished.”3

Historically, the Department has taken the position that help supply services are subject to Pennsylvania tax if the “delivery or use” of the service occurs in Pennsylvania.4 “Delivery” occurs in Pennsylvania if the temporary worker reports for work “at a location” in Pennsylvania, and “use” occurs if that worker performs work “at a location” in Pennsylvania.5 On its face, the Department’s historical policy does not contemplate a worker who provides services remotely from a location outside Pennsylvania.