How to File Sales Tax in Pennsylvania

If you’re selling digital services and products to customers in Pennsylvania, then you might be liable for Pennsylvania’s sales tax. We’ve compiled over 10 years of experience in tax compliance to create this comprehensive guide, which covers how to file sales tax returns online and stay compliant with the state's regulations.

We’ve scoured the Pennsylvania Department of Revenue (DOR) website to provide you with all the necessary information about sales tax for businesses in one convenient place.

How to file sales tax returns in Pennsylvania

Sales and taxes should be reported and filed using US dollars. If you’ve made any transactions in Pennsylvania in a different currency, be sure to convert those to USD using official currency exchange rates.

When to file and pay

The timing for filing your return depends on your sales volume, and the DOR will assign you a filing frequency (monthly, quarterly, or semi-annually) after you register for a Pennsylvania seller's permit. State governments generally ask larger businesses to file more frequently. All new businesses are registered to file returns quarterly during the first year in business.

Pennsylvania sales tax returns and payments must be remitted at the same time; both have the same due date. The DOR requires all sales tax filing to be completed by the 20th day of the month following the assigned filing period. Due dates falling on a weekend or holiday are adjusted to the following business day.

PA sales tax filing deadlines

Monthly PA filing deadlines

Reports are due on the 20th day of the month following the reporting month. For example, the July sales tax report is due August 20.

| Month | Filing Deadline | |-----------|-----------------------| | January | February 20 | | February | March 20 | | March | April 20 | | April | May 20 | | May | June 20 | | June | July 20 | | July | August 20 | | August | September 20 | | September | October 20 | | October | November 20 | | November | December 20 | | December | January 20 |

Quarterly PA filing deadlines

Reports are due on the 20th day of the month following the reporting period.

| Quarter | Filing Deadline | |------------------|-----------------------| | First Quarter | April 20 | | Second Quarter | July 20 | | Third Quarter | October 20 | | Fourth Quarter | January 20 |

Semi-annual PA filing deadlines

Reports are due on the 20th day of the month following the reporting period.

| Reporting Period | Filing Deadline | |------------------------------|-----------------------| | First Half of the Year | August 20 | | Second Half of the Year | February 20 |

Zero Returns

Even if you didn’t make any sales in Pennsylvania during your reporting period, you must still file a "zero return." This follows the exact same process as a normal return, just with no tax liability to report. Failure to submit a zero return can result in penalties and interest charges.

Pennsylvania sales tax prepayments

Businesses remitting $100,000 or more for the third calendar quarter of the preceding year must remit 50 percent of the tax liability due for the same month of the preceding year.

How to prepare your Pennsylvania sales tax return

Before you start working on your sales tax return, you'll need to collect all the sales information for your tax period. The DOR online tax return system will guide you, but generally, you'll need the following details:

Sales transactions

Every business needs to know how much it sold—both in gross sales and in taxable sales—and to whom the business sold it. You are also required to collect and pay sales tax for any personal property sold to residents of Pennsylvania, with certain exceptions (e.g., if the buyer has a resale certificate or the item isn't considered taxable).

In addition to your gross Pennsylvania sales (total sales revenue from buyers in Pennsylvania, regardless of taxability), filing a sales tax return requires the following information:

• Total sales in the state
• The amount of sales tax collected
• The location of each sale
• Taxable sales by type: Different types of products are subject to different tax rules and amounts.
• Non-taxable sales by type: Examples include sales to resellers, non-taxable labor, and certain non-taxable foods.
• Deductions: This might include items such as delivery charges.
• Total collected sales tax: The total amount of sales tax you collected from customers during the filing period.

If the amount of taxable sales does not reach Pennsylvania's economic nexus thresholds, a sales tax return might not be required. However, if a business has employees, an office, or a warehouse located in Pennsylvania and is selling taxable goods and/or services, it must collect sales taxes, file returns, and pay the appropriate amount to the state.

Special taxing jurisdictions in Pennsylvania

In addition to state sales taxes, Pennsylvania sellers must manage local sales taxes. Whenever you make a sale to a buyer located in a town/city that charges more than the base state tax rate, you must collect the extra taxes for that district. For example, buyers in Philadelphia are subject to a 2% local tax in addition to the 6% Pennsylvania state tax, for a total of 8%.

For more information, see Pennsylvania Sales and Use Tax Bulletin 2019-01.

How to complete and file a Pennsylvania sales tax return

The final step is to file and remit tax. The DOR has an online filing system called PADirectFile where you can enter your information to generate the return. You can also file via telephone at 1-800-748-8299. Online filing is preferred and required for payments of $1,000 or more.

How to pay

Tax payments must be in US dollars and can be made directly at the time of filing. Once you’ve completed the return, you’ll remit the total calculated sales taxes minus any prepayments you’ve already made.

Payment options include:

• Bank transfer, by providing your bank account and routing information.
• Credit or debit card. A convenience fee will be charged.

Late filing penalties and interest

Hopefully, you won't need to worry about this section because you're filing and remitting Pennsylvania sales tax on time. However, in the real world, mistakes happen.

If you miss a sales tax filing deadline, file your return as soon as possible. Failure to file returns and remit collected tax on time may result in penalties and interest charges, and the longer you wait to file, the greater the penalty and the greater the interest.

The timely filing discount in Pennsylvania is the lesser of $25 or 1 percent of the tax due for monthly filers, the lesser of $75 or 1 percent of the tax due for quarterly filers, or the lesser of $150 or 1 percent of the tax due for semi-annual filers.

If you miss a Pennsylvania sales tax filing deadline due to unavoidable circumstances like weather or an accident, you might be eligible for an extension from the DOR. Be prepared to provide evidence to support your request. Furthermore, if you are considering buying a business, it's crucial to contact the DOR beforehand to check its sales and use tax standing. You will be responsible for any existing tax debts after the purchase is complete.

Getting third-party help with sales tax filing

While you can file directly with the DOR, manual filing is difficult, especially for larger businesses with many transactions across different districts. Outsourcing to experts like accountants, bookkeepers, or sales tax automation companies is common. They understand Pennsylvania sales tax law and can help you navigate its complexities.

Quaderno offers a service to simplify your sales tax compliance. Besides generating detailed tax reports with all necessary data, Quaderno can handle the filing process for you. By connecting to your sales data, Quaderno manages the submission of your sales tax returns to the DOR, ensuring timely and accurate filing. This saves time and provides peace of mind.

For further reading that will help you stay compliant and successful as a remote seller, check out our Business Guide to Sales Tax in Pennsylvania.

Sales tax filing in other states

• Arizona Sales Tax Filing Guide
• California Sales Tax Filing Guide
• Colorado Sales Tax Filing Guide
• Florida Sales Tax Filing Guide
• Georgia Sales Tax Filing Guide
• Illinois Sales Tax Filing Guide
• Massachusetts Sales Tax Filing Guide
• New Jersey Sales Tax Filing Guide
• New York Sales Tax Filing Guide
• North Carolina Sales Tax Filing Guide
• Texas Sales Tax Filing Guide
• Virginia Sales Tax Filing Guide
• Washington Sales Tax Filing Guide