Note important changes introduced by
Sales and Use Tax Bulletin 2019-01 that are effective July 1, 2019.
A referrer has an agreement with a marketplace seller or a remote seller to:
- Advertise the sale of the seller’s goods and services in a physical or electronic forum.
- Receive consideration from the marketplace seller or remote seller for the sale offered in the listing or advertisement.
- Transfer a purchaser by Internet link, telecommunications or other means to the seller or an affiliate to make the sale; and
- Does not involve the collection of a receipt from the purchaser for the sale.
Individuals or business entities that print or publish newspapers are not referrers. Furthermore, a referrer does not include individuals or businesses that provides internet advertising services unless the individual or business provides information about the seller’s shipping terms or tax collection.
A referrer that refers taxable sales of $10,000 or more to Pennsylvania customers in the previous calendar year must elect one of two options by June 1 of each calendar year:
Option 1 - Register to collect and remit Pennsylvania sales tax.
Option 2 - Comply with Pennsylvania’s notice and reporting requirements.
An election made on or before June 1 of each calendar year will be in effect through June 30 of the succeeding year.
The referrer must complete
REV-1830 (Annual Marketplace Sales Election Form) to make the election.
An election to comply with the notice and reporting requirements may be changed at any time to an election to collect and remit sales tax.
Failure to file an election will be treated by the Department of Revenue as an election to comply with the notice and reporting requirements.
Option 1 - Sales Tax Registration
If a referrer elects to collect and remit sales tax, then it is required to register for a sales tax license. A sales tax license can be obtained at this web address:
https://www.pa100.state.pa.us. Sales tax collected by a referrer must be remitted directly to the Department of Revenue. The referrer may not give the collected sales tax to its remote sellers.
Collections are to begin July 1 for the current election cycle.
Option 2 - Notice and Reporting Requirements
If a referrer elects to comply with the notice and reporting requirements, it must take the following actions starting July 1 for the current election cycle:
Post a notice on their forum that states:
Pennsylvania sales or use tax may be due in connection with the purchase and delivery of tangible personal property to Pennsylvania individuals and businesses.
Pennsylvania requires the purchaser to file a use tax return if tax is due and the tax was not collected by the seller. Please visit
this link to learn more about your use tax obligations under Pennsylvania law.
The seller to which you are being referred may or may not collect and remit sales tax. If the seller to whom you are being referred does not collect sales tax, the seller may be required to provide information to you and the Pennsylvania Department of Revenue about the purchase and the potential use tax liability.
This notice is required pursuant to the provisions of the Tax Reform Code of 1971. 72 P.S. § 7213.2.
Provide a notice to remote sellers that states:
Sales or use tax may be imposed by the Commonwealth on this transaction.
The remote seller may be required to make the election required by 72 P.S. § 7213.1(A).
Please visit Marketplace Sales guidance to learn more about your sales and use tax obligations under Pennsylvania law.
Provide an annual report to the Pennsylvania Department of Revenue
A referrer making an election to comply with the notification requirements must submit an annual report by January 31 of each year to the Department of Revenue that provides a list of the individuals and business entities who received referrals from the referrer and received the required notifications.
Instructions for filing these reports with the department are provided under
A report required under this section shall be submitted by an officer of the referrer and shall include a statement made under penalty of perjury by the officer that the referrer made reasonable efforts to comply with the notice and reporting requirements of this part.
Each failure to comply with the notice and reporting requirements can result in a penalty of $20,000 per violation, per year, or 20 percent of total Pennsylvania sales during the previous 12 months, whichever is less.