October, 2009
Re: PA Use Tax Compliance
The PA Department of Revenue is sending out Use Tax Compliance notices to most taxpayers. Please note that a response is required and if ignored could result in a potential Sales and Use tax audit.
Use tax is the same as sales tax but it is the responsibility of the purchaser to pay rather than the vendor to charge. For example, if you are dealing with any out of state vendors, which a lot of people do now with internet or mail order catalogs, you may be purchasing office supplies, furniture materials, and supplies for your business that are subject to sales tax, but because the vendor is out of state they will not always charge tax on the invoice. It then becomes your responsibility as a Pennsylvania business to pay the sales tax in the form of “use tax” (the same percentage). Therefore, these compliance letters are looking for any purchases that you made without paying in sales tax.
If you are confident that you have paid in sales tax when required and have no use tax liability, the forms should be filed with - 0 - and a signature. If you find by looking at your vendor invoices that you have a use tax liability and need our help in filing, feel free to contact us.