As outlined in Sales and Use Tax Bulletin 2019-01, Pennsylvania’s sales tax nexus is expanded to include businesses making at least $100,000 in annual Pennsylvania gross sales.
All marketplace facilitators and online sellers who have economic nexus (e.g. Pennsylvania annual gross sales of greater than $100,000) must now register, collect and remit Pennsylvania sales tax starting July 1, 2019. If your business has economic nexus in Pennsylvania under these new standards, the Marketplace Sales provisions allowing a choice of either collecting sales tax or providing notices to Pennsylvania customers will no longer apply to you after that date. Go to Pennsylvania Sales Tax and Economic Nexus to learn about your registration and reporting requirements.
For those entities without physical presence or economic nexus, such 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; or (2) comply with tax notification and reporting requirements (“Notice and Reporting Requirements”). The election must be made on or before June 1 of each calendar year.
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 will continue to receive information notices from businesses that 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.
See more information on Pennsylvania Customers.
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.