Begin Main Content Area

Marketplace Sales

Certain marketplace facilitators, remote sellers and referrers facilitating, making or referring sales to Pennsylvania customers must make an election to either: (1) register to collect and remit sales tax beginning April 1, 2018; or (2) comply with tax notification and reporting requirements (“Notice and Reporting Requirements”). The deadline for this election is March 1, 2018.

Depending on its activities, a single business can be a marketplace facilitator, a remote seller and a referrer, or any combination of these activities.

What is a marketplace facilitator?

A marketplace facilitator contracts with marketplace sellers to list or advertise the sellers’ goods and services for sale through a marketplace. The facilitator directly or indirectly collects the payment from the purchaser, and transmits the payment to the marketplace seller.

See more information on Marketplace Facilitators.

What is a marketplace seller?

A marketplace seller has a contract with a marketplace facilitator in which the facilitator agrees to list or advertise the seller’s goods and services, collect payment from customers and remits the payment back to the seller.

See more information on Marketplace Sellers.

What is a remote seller?

A remote seller does not maintain a place of business in Pennsylvania, but makes sales directly to individuals and businesses in Pennsylvania.

See more information on Remote Sellers.

What is a referrer?

A referrer receives a commission, fee or other consideration from a seller for listing or advertising the seller’s goods or services and directs the purchaser to the seller’s forum. A referrer does not collect payment from the purchaser. Referrers do not include persons or business entities that print or publish newspapers. Referrers also do not include persons or business entities that provide internet advertising services, unless the person or business provides: (1) the seller's shipping terms; and (2) whether the seller charges sales tax.

See more information on Referrers.

Pennsylvania customers

Beginning April 1, 2018, Pennsylvania customers will begin receiving information notices from businesses who have elected not to collect sales tax. The information notice will list the  purchases and purchase price of products for which sales tax was not collected by the seller.

Pennsylvania customers will also receive annual notices detailing their purchases of products for which sales tax was not collected and similar information will be reported by the business to the Department of Revenue. Pennsylvania individuals and businesses who purchase taxable items without paying Pennsylvania sales tax are required to remit use tax.

See more information on Pennsylvania Customers.

Technical Information

Detailed information that may assist you includes: Act 43 of 2017 (Marketplace Sales legislation), Sales Tax Bulletin 2018-01 and information about Pennsylvania sales tax.

To review these documents, go to Technical Information.

Frequently Asked Questions

Specific answers to questions that marketplace facilitators, remote sellers, referrers or Pennsylvania customers may have pertaining to Marketplace Sales are found under Frequently Asked Questions.