Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article II - Sales and Use Tax › Chapter 32 - EXEMPTIONS › GENERAL PROVISIONS › Section 32.5 - Multi-state sales

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Transactions where delivery is made to locations within this
						Commonwealth.
Where delivery of taxable property or services is made
						to locations within this Commonwealth, the transactions shall be subject to
						tax. Delivery in this Commonwealth to a nonresident purchaser does not make the
						transaction exempt.
(b)
Transactions where delivery is made to locations outside this
Commonwealth.
When tangible personal property is sold, leased
						or serviced within this Commonwealth and the vendor, lessor or service person
						is obligated to deliver it to a point outside of this Commonwealth, or to
						deliver it to a carrier or to the mails for transportation to a point outside
						this Commonwealth, sales tax does not apply. However, where tangible personal
						property under a sale, lease or service is delivered in this Commonwealth to
						the buyer or lessee or their agent, other than an interstate carrier, the tax
						applies, notwithstanding that the buyer or lessee may subsequently transport
						the property out of this Commonwealth.
Examples:
Henrietta Higgins, a speech pathologist, purchased
						  disposable laboratory supplies from a Commonwealth retailer. The retailer
						  delivers the supplies (cost and freight) to Providence, Rhode Island. Title to
						  the supplies passed to Higgins at the Commonwealth point of shipment, but sales
						  tax does not apply because delivery is made out-of-State.
Ahab Inc., a maker of specialized steel in this
						  Commonwealth, supplies harpoons to Neptune Inc., a Massachusetts fishing
						  concern. The harpoons are delivered to Neptune Inc.'s agent (freight on board)
						  Harrisburg, Pennsylvania for ultimate delivery in Massachusetts. Sales tax
						  applies to this transaction because delivery is made and title passes in this
						  Commonwealth.
(c)
When vendor, lessor or service person shall collect tax.
A
						vendor, lessor or service person engaged in business activity within this
						Commonwealth shall collect the tax imposed by the act with respect to the
						following transactions:
(1) Where property is
						shipped from a point outside this Commonwealth to a point within this
						Commonwealth.
(2) Where property is
						shipped from a point within this Commonwealth to another point within this
						Commonwealth by a route a portion of which is outside this
						Commonwealth.
(3) Where property is
						purchased and delivered within this Commonwealth even though the purchaser
						subsequently transports the property to a location outside this Commonwealth
						with the following exceptions:
(i) Property
						purchased or having a situs within this Commonwealth solely for the purpose of
						being processed, fabricated or manufactured into, attached to or incorporated
						into personal property and thereafter transported outside this Commonwealth for
						use exclusively outside this Commonwealth shall be deemed to be a resale and
						therefore is not subject to tax.
(ii) The sale at retail or use of motor
						vehicles, trailers or semitrailers, or bodies attached to the chassis thereof
						sold to a nonresident of this Commonwealth to be used outside this Commonwealth
						which are registered in a state other than this Commonwealth within 20 days
						after delivery to the vendee is not subject to tax.