Business Taxes

Sales and Use tax is imposed on the retail sale, consumption, rental or use of tangible personal property in Pennsylvania (unless purchaser is exempt). The tax is also imposed on certain services relating to such property and on specific business services. The Pennsylvania Department of Revenue publishes a booklet, Retailers Information (REV-717 AS) that contains a listing of items subject and not subject to PA Sales Tax and a description of services that are taxable. The booklet can be viewed online or ordered through our forms ordering service at 1-800-362-2050.

If you buy items that are subject to Sales Tax for which the seller does not charge and collect the tax on the invoice (or receipt), you are personally responsible for remitting the tax directly to the PA Department of Revenue. This tax is called USE TAX. Purchases made over the Internet, through toll- free numbers (800, 888, and 877), from mail order catalogs, or from an out-of-state location are examples of purchases that would be subject to USE TAX. The tax rate is the same as the Sales Tax, 6 percent state, and 1 percent local tax, if the purchaser is located in Philadelphia or Allegheny County.

Generally, the purchase of items of tangible personal property to be used predominantly and directly in farming operations IS NOT subject to Sales Tax. The Pennsylvania Department of Revenue publishes a booklet,Tax Information for Farmers (REV-1729) that provides Pennsylvania farmers and those selling to farmers, a guide to the application of sales and use tax. The booklet can be viewed online or ordered through our forms ordering service at 1- 800-362-2050.