PHILADELPHIA—The Pennsylvania Department of Revenue extended by seven months, until Sept. 1, the deadline for online businesses and other remote sellers with a physical presence in Pennsylvania to begin collecting state sales tax. [Pa. Dept. of Rev., News Release, 1/27/12]
The department said a number of e-commerce retailers complained of operational and technical hurdles to meeting the original Feb. 1 compliance deadline for companies to become licensed to collect sales tax and to begin collection of the tax.
“In the interest of being reasonable and respecting the difficulty of tailoring sales tax software to Pennsylvania's complicated sales tax rules, we believe extending the compliance deadline is the fair thing to do,” Revenue Secretary Dan Meuser said in a news release.
The department issued a tax bulletin in December 2011 aimed at clarifying Pennsylvania's sales tax nexus law for remote sellers and the revenue department's authority to enforce it .
Sales and Use Tax Bulletin 2011-01 explains that Pennsylvania relies on in-state activity to establish nexus and provides examples of the types of activity that constitute “maintaining a place of business in Pennsylvania” sufficient to require sales tax registration and collection on internet, catalog, and telephone sales.
Meuser said there will be no further extensions of the Sept. 1 compliance deadline, which he said falls far enough ahead of the holiday season to enforce uniform sales tax collection and foster fair competition between e-commerce and brick-and-mortar businesses during the busiest retail sales season of the year.
Businesses with Pennsylvania nexus that fail to register and begin collecting sale tax by Sept. 1 “will face a variety of escalating enforcement options over time, including assessment, audit, lien, or referral to a collection agency or the Office of Attorney General,” Meuser said.
He said the department has the statutory authority to look back at least three years for audit and assessment purposes.
The department's initiative to address sales tax collection by online retailers coincides with an effort to encourage voluntary compliance by individuals with Pennsylvania's use tax law.
For the 2011 tax year, the revenue department added a use tax line on the Pennsylvania personal income tax return to raise awareness of use tax obligations and make it easier for individuals to report and pay the tax.
The text of the news release is available online at http://www.portal.state.pa.us/portal/server.pt/document/1221138/revenue_department_offers_one-time_extension_on_nexus_compliance_deadline_for_remote_sellers and the bulletin is available online at http://www.portal.state.pa.us/portal/server.pt/document/1210543/st_bulletin_2011-01_pdf.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)