Pennsylvania's Sales and Use Tax

A "No" for Retailers, a "Yes" For Taxpayers

Yesterday, the Pennsylvania Department of Revenue pushed back the deadline for online retailers to begin collecting sales tax. Collection will begin in November. Good for retailers, but what about taxpayers? In Pennsylvania, consumers have a legal obligation to remit use tax to the Pennsylvania Dept. of Revenue.  Line 25 on 2011 individual state income tax forms reports use tax on items Pennsylvania residents have purchased online or in states such as Delaware on which no sales tax was charged.

Tax experts at the Pennsylvania Institute of Certified Public Accountants (PICPA) can educate your audience about this sales and use tax and how to fill in line 25 on their tax forms. Consumers may be wondering –

  • If you don’t have your receipts, how do you calculate what you owe?
  • How is line 25 filled in? By using a percentage or a dollar amount?
  • Can you enter zero? Will this get you flagged for an audit?
  • How long has this law been in place?
  • Does this tax apply if you don’t live in Pennsylvania but order online from a company based in Pennsylvania?

Online shopping is a staple in most households. Let PICPA experts help your audience account for those purchases. To set up an interview with a local CPA, please contact Kathleen Miller at 215-972-61288 or kmiller@picpa.org.