
A seller’s permit is commonly known as a sales tax permit, reseller permit, resale certificate, sales tax exemption certificate, sales tax license or sales and use tax permit. In the state of Pennsylvania it is formally referred to as a sales tax license. This license will furnish a business with a unique PA sales tax number, otherwise referred to as a Pennsylvania Tax ID number. It is essential to know that obtaining this license is one of the first steps a business owner should take when starting a business. As the task of collecting sales tax falls on the business that makes the sales and not the consumer, any failure to remit sales tax may lead to interest charges, fines and/or criminal charges.
You need to get a sales tax permit and comply with sales tax laws if you have nexus or a connection to the state of Pennsylvania. Nexus can be triggered by either physical or economic presence.
You will have to comply with the state of Pennsylvania’s individual sales tax laws and apply for a seller’s permit if:
The examples above establish the connection (nexus) between the state and the seller. This allows the state to impose a sales tax collection obligation on the seller.
Additionally, as of June 2018, the Supreme Court of the Unites States ruled that nexus can also be established by an entity conducting economic activity in a state. This is what is known as remote seller nexus. If a remote seller has above a certain amount of sales volume and/or transactions in another state, they are required to register for sales tax. This means that all online sellers on marketplaces (Amazon, Sears, Walmart, Etsy, Big Commerce, Shopify, eBay etc.) may have to potentially collect and pay sales tax.
Another closely related permit is a Pennsylvania resale certificate -also known as a sales tax exemption certificate- provided after completing the Pennsylvania REV 1220 Form, which grants your business the benefit of being able to buy goods without paying local sales tax on them. When doing this, you are the primary party responsible for collecting the tax from the customer when you sell the item. To complete the PA tax exempt form, you will need to provide your Pennsylvania sales tax permit number.
You can either fill out a paper application and file it in person or you can simply submit an online application. It is strongly recommended that all new businesses file for their sales tax permits through an online tax registration application as it is the easiest and fastest way to apply. For the fastest processing time, please have the following information ready to complete the online application for a Pennsylvania Sales Tax Number:
Business name, physical/ mailing address & phone number
A short description of the business
The owner or officer’s Information
Payment information
Register for a Pennsylvania Sales Tax License Online by filling out and submitting the “Pennsylvania Sales Tax License Application” form. This license will furnish your business with a unique sales tax number (Pennsylvania Sales Tax ID Number). Once you complete the online process, you will receive a confirmation with all relevant important information within 1-2 business days. Shortly after that, you will receive your documents directly from the PA Department of Revenue and your PA eTides account will be ready for future use.