PA Announces Measurement Dates for Economic Nexus Standards

Recently, Pennsylvania adopted an economic nexus standard with respect to determining whether an out-of-state entity is required to register for a license and subsequently collect, report and remit Pennsylvania Sales Tax. 

The Commonwealth measures its sales and use tax economic nexus threshold by calendar-year sales preceding the collection period. Additionally, after the first year, collection begins in the second quarter, allowing taxpayers time to compile their calendar year sales. Registration and collection begin on July 1, 2019.

Examples of the collection measurement periods are listed below:

  • July 1, 2019 – March 31, 2020 – for this collection period, taxpayers should use calendar year 2018 sales to determine nexus.
  • April 1, 2020 – March 31, 2021 – for this collection period, taxpayers should use calendar year 2019 sales to determine nexus.
  • Subsequent Years – collection periods in subsequent years will follow the same pattern as the April 1, 2020 – March 31, 2021 collection period.

If you should have any questions or need assistance in determining your sales tax obligations please contact Bob Grossman, Don Johnston or Michael Weber at 412-338-9300.

Related Posts:

PA Adopts Economic Nexus Standard for Sales Tax Collection

Landmark Supreme Court Decision Expected to Significantly Change Reach of Sales Tax

PA Tax Updates & Reminders

Pennsylvania Enacts Remote Seller Requirements and Other Changes to Sales and Use Tax Rules

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Michael Weber

As both an accountant and an attorney, Michael provides valuable expertise to the clients he serves in a variety of industries. He specializes in providing tax planning and compliance services as well as assistance related to the formation of new entities. Michael also helps corporate and individual clients to address international tax issues.
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