Sales and Use Tax Q&A with Pennsylvania Department of Revenue

PICPA

Q&A with Pennsylvania Department of Revenue

Sales and Use Tax

Why is the turn-around time to provide third-party credits in an audit so short (sometimes less than one month) even though the audit could go on for months or even years?
In regard to Act 13 of 2019, Will additional guidance on the definition of an "animal housing facility" be provided by Jan 1, 2020?
Scenario: A client is under a PA sales tax audit. PA auditors note that sales tax on delivery charges of SLO wine/liquor orders from the PA fine wine and liquor stores is not charged on their invoices and should be.
Why does the Department of Revenue still use the 1980 statistics for cash sales vs. credit sales for their sales tax audits? People primarily use credit or debit cards for payments today.
When are charges for ownership interest in an airplane e.g., NetJets, not be subject to Pennsylvania Sales and Use Tax?
What is the procedure for an individual who is not required to hold a sales and use tax license to report use tax on a one-time purchase for which sales tax was not charged?
Scenario: A company engages an employment agency vendor to search for and refer potential new employees. The Company ultimately hires some of these referrals, all of whom personally reside outside of Pennsylvania.
Is this credit limited to sales tax paid to certain states and, if so, specifically which states are those and what is the basis/rationale for just those states?
What are the qualifications or limitations to this credit for sales tax legally paid other states?
Does Pennsylvania allow a credit against use tax for sales tax legally paid to another state?
Will the Wayfair decision have any impact on the recent marketplace provisions?
Given the U.S. Supreme Court’s decision in the Wayfair case, is the Department of Revenue considering any changes to existing sales and use tax nexus and collection rules?
What is the time span for the Department to complete an audit after receipt of information?
Scenario: An IT provider bills a client via a flat, lump-sum, recurring monthly charge, of which the largest portion relates to the value of the services provided by the vendor’s employees
Scenario: Claiming a refund for the sales tax paid on the purchase of wine which is then resold
Has the DOR offered any guidance on “Platform as a Service” or “Infrastructure as a Service”?
What criteria does the DOR use to determine how and when a taxpayer is accessing taxable canned software vs. a non-taxable service?
Will the Department change its standards for reviewing Applications for Sales Tax Exemption (Form Rev-72), which we understand have been based solely on the statutory test under the Institutions of Purely Public Charity Act, Act 55 of 1997?
If parent company purchases raw material and gives to subcontractor to fabricate only, is the subcontractor labor subject to use tax when finished product is utilized in construction activities? Parent company maintains title to raw material.
Scenario: A §501(c)(3) non-profit tax exempt organization forms a separate LLC

Pennsylvania Institute Of Certified Public Accountants

Copyright © 1998-2023 PICPA. All rights reserved. Privacy Policy | Terms and Conditions | Site Map

Questions? Feedback?Olark live chat software