Sales Tax in Pennsylvania and Maine
You likely need a Pennsylvania sales and use tax license to sell goods in Pennsylvania. This is also called a seller’s permit. Pennsylvania taxes digital goods. You need this tax license even if selling online.
What is the sales and use tax in Maine?
Maine’s sales tax rate is 5.5%. Maine does not collect sales tax locally. Taxed goods include furniture, appliances, and vehicles. Groceries, medicine, and gasoline are exempt.
Pennsylvania Sales Tax Details
To start a business in Pennsylvania costs about $125. More fees apply for corporations or partnerships. You must collect Pennsylvania sales tax if your business has nexus. Nexus means having a physical presence or economic activity in the state. The Pennsylvania sales tax rate is 6%. Some counties add 1-2% local tax. Food, clothing, textbooks, and pharmaceuticals are exempt.
Verifying your business’s PA identification number is done by contacting the e-Business Center at 717-783-6277. To get a Pennsylvania sales tax license, apply online for fastest processing. Have your business name, address, phone number, and description ready. Payment information is also required. There is no fee.
Most businesses need to complete the PA-100 form to register for taxes. This is done through the PA Department of Revenue and Department of Labor & Industry.
When you register for sales tax, Pennsylvania will assign you a certain filing frequency. You’ll be asked to file and pay sales tax either monthly, quarterly, or annually. Usually the frequency they choose is based on the amount of sales tax you collect from buyers in Pennsylvania. After obtaining a sales tax permit, Pennsylvania businesses must maintain compliance with Pennsylvania sales tax laws. This typically involves collecting sales tax from customers on taxable goods and services. Failure to obtain or maintain a sales tax permit can seriously affect a business.
PA Sales Tax Registration
Who must register for PA sales tax?
Any business or individual that sells taxable goods or services in Pennsylvania needs to register for a Sales Tax Permit.
How do I register for a Sales Tax Permit in Pennsylvania?
You can register for a Sales Tax Permit online through the Pennsylvania Department of Revenue’s website. What information do I need to provide when registering for a Sales Tax Permit in Pennsylvania? You’ll need to provide your business name, address, phone number, and description. Payment information is also required.
There is no fee to register for a Pennsylvania sales tax license. You’ll need a Federal Tax ID Number, also known as an Employer Identification Number (EIN), to register. The EIN is a unique nine-digit number assigned to your business by the Internal Revenue Service (IRS).
You likely need a sales tax permit if you sell taxable goods or services online and have a sales tax nexus in Pennsylvania. You should charge sales tax on shipping charges when making a sale to a buyer in one of your nexus states if that state’s tax law declares shipping charges are taxable.
All marketplace facilitators and online sellers who maintain a place of business in Pennsylvania by having economic presence must now register, collect and remit Pennsylvania sales tax. The facilitator directly or indirectly collects the payment from the customer and transmits the cost to the marketplace seller.
Pennsylvania first introduced its sales and use tax in 1953, and it has since risen to the current 6%. Apart from the state tax, local governments can also charge a sales tax. Currently, Allegheny County charges a 1% sales tax, while Philadelphia County’s sales tax is at 2%.
Do I need a state tax ID number in PA?
You likely need a Pennsylvania sales tax license to sell goods in Pennsylvania. This is also called a seller’s permit. Pennsylvania taxes digital goods. You likely need this tax license even if only selling online.