Pennsylvania Sales Tax Goes Digital

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Effective August 1, 2016, Pennsylvania’s sales tax will be imposed on the sale of digital products. Thus, sellers of digital products should start collecting Pennsylvania sales tax on such sales to customers located in Pennsylvania. This is a significant expansion of the sales tax base in Pennsylvania, with purchases of music, smartphone “apps,” and online video streaming subscription services all falling within the scope of the legislation.

Specifically, the legislation (House Bill 1198), which was signed into law by Governor Wolf on July 13, 2016, expands the definition of taxable “tangible personal property” to include “electronically or digitally delivered, streamed …read more

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