Pennsylvania Sales & Use Tax — REV-819 / PA-1 License Registration, Returns & Exemptions

Determine whether the business has Sales & Use Tax nexus in Pennsylvania under the Tax Reform Code of 1971 (72 P.S. §7201 et seq.) and economic nexus thresholds (>$100,000 in PA gross sales or 200 or more separate transactions in the prior or current calendar year, effective July 1, 2019). Identify which products and services are taxable, exempt, or subject to special rates (e.g., clothing exempt; food for home consumption exempt at state level but taxable in Philadelphia/Allegheny County at 2% local rate; digital products taxable since 2016).

Register for a Pennsylvania Sales Tax License using the PA Enterprise Registration Form (PA-1) or online via myPATH (Pennsylvania's tax portal at mypath.pa.gov). A separate license is required for each business location. The license is free and has no expiration date but must be displayed at the business premises. Marketplace facilitators (e.g., Amazon, Etsy) register separately and assume collection responsibility for marketplace sales under Act 13 of 2019.

Identify sales that qualify for exemption and collect proper documentation. Pennsylvania recognises exemptions for resale (REV-1220 Resale Certificate), manufacturing/processing (REV-1220 with exemption reason code), agriculture, charitable or religious organisations (REV-1220), and direct pay permit holders. Blanket certificates are permissible for ongoing vendor relationships. Failure to retain valid exemption certificates shifts liability to the seller.

Prepare and file the Pennsylvania Sales, Use and Hotel Occupancy Tax Return (PA-3) for the assigned filing period (monthly if annual liability >$600; quarterly if $75–$600; semi-annual if <$75). Returns and payments are due the 20th of the month following the close of the period (monthly/quarterly) or 20th of the month following the semi-annual period. All filings must be made electronically via myPATH for businesses with annual liability of $25,000 or more; voluntary e-file is available for all filers.

Reconcile SUT returns to the general ledger and sales records for the filing year, retain required records for 4 years (the PA statute of limitations under 72 P.S. §7268), and prepare an audit-ready file. Pennsylvania auditors typically request sales journals, exemption certificates, purchase invoices, and point-of-sale system reports. Voluntary disclosure (under the PA DOR Voluntary Disclosure Program) should be considered if prior-period obligations were missed.