Pennsylvania Requirement for Remote Sellers

Pennsylvania enacts remote seller requirements. Under the recently enacted legislation, certain remote sellers, marketplace facilitators, and referrers must elect to either:

  • collect and remit the sales tax; or
  • comply with specified notice and reporting requirements.

The notice requirement includes: “providing written notice to each purchaser at the time of the sale stating that sales tax is not being collected, and the purchaser may be required to remit the use tax,” to the state themselves. The reporting requirements are for remote sellers with sales exceeding $10,000, and is not contingent upon the remote seller having nexus with Pennsylvania for sales tax.

A “remote seller” is a person who does not maintain a place of business in Pennsylvania and who makes retail sales through a forum of tangible personal property that is subject to sales or use tax. Marketplace facilitators, marketplace sellers, referrers, and employees are not considered remote sellers.

A “marketplace facilitator” is a person who facilitates retail sales of tangible personal property.

A “referrer” is a person who has an agreement or arrangement with a marketplace seller or remote seller to: list or advertise for sale one or more products of a marketplace seller or remote seller; receive consideration from the marketplace seller or remote seller from the sale offered in the listing or advertisement; and transfer a purchaser to a marketplace seller, remote seller, or affiliated person to complete a sale.

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