Certified Service Providers

The Department of Revenue is working with Certified Service Providers (CSPs) to make it easier for individuals and businesses with sales tax collection obligations in Pennsylvania to comply with the law.

Under this arrangement, any vendor who does not have physical presence in Pennsylvania can outsource most of their sales tax administration responsibilities to a CSP. For example, a CSP will facilitate the registration process, file tax returns and collect and forward tax payments to the department on behalf of its clients.

A CSP can also help vendors of products on the Internet determine which products are subject to Pennsylvania sales tax, easing the compliance burden further. Moreover, working with a CSP can relieve the seller of certain liabilities upon audit. Vendors with no physical presence who elect to use a CSP are not required to obtain a Pennsylvania sales tax license or file sales tax returns so long as they retain and use the services of a CSP.

Below are the three companies the department has procured to perform sellers’ sales tax functions at free or reduced cost:

Avalara – https://www.avalara.com

Sovos – https://sovos.com

TaxCloud – https://TaxCloud.com

As a reminder, effective July 1, 2019, vendors who have no physical presence but whose sales in Pennsylvania exceed $100,000 in the prior year, must register to collect and remit Pennsylvania sales tax or choose to use a CSP as described above.

If you are an online seller who prefers to file tax returns and remit Pennsylvania sales tax directly to the Department of Revenue, you need to register for a sales tax license. Visit mypath.pa.gov to complete the Pennsylvania Online Business Tax Registration process.