Pennsylvania Sales Tax for Photographers

by Dec 31, 2020Sales Tax

To begin you have to ask yourself 3 questions…


DEFINITIONS

let’s first take a look at what each of these sale tax terms means so that you can understand how it pertains to Photographers in Pennsylvania.
These definitions are laid out below.


👉NEXUS

So, what’s nexus? The term “nexus” is used in tax law to describe a situation in which a business has a tax presence in a particular state. A nexus is basically a connection between the taxing authority and a business that must collect or pay the tax. It’s possible to have nexus in more than one state especially if you travel to another state to shoot. So you want to be sure you understand the laws of each state you work in.


👉SOURCE

The source indicates where the sales are taxed.

  • Origin-sourced sales are taxed where the seller is located, so this is based on your zip code.
  • Destination-sourced sales are taxed at the location where the buyer takes possession of the item sold.

Also, keep in mind if the client picks up tangible goods from your location or studio, this is the point where the transaction happens. If you mail or ship to the client, it will be by their zip, not yours.


👉PHYSICAL GOODS

Any physical products sold to a client, items you can touch and hold like prints, albums, frames, etc…


👉DIGITAL GOODS

These are digital items delivered electronically via telephone lines, over the internet, by email, or by another alternative form of non-physical transmission.
Beware of digital prints delivered on a physical device such as a thumb drive or CD as these are no longer digital and are now considered physical because you can touch them.
Services are anything needed to produce the end product, such as shooting, editing, culling, touchup, etc…


👉SERVICES

Services are anything needed to produce the end product, such as shooting, editing, culling, touchup, etc…


👉SHIPPING

This is any shipping charged by you to your client. Third parties such as album companies who dropship or online
galleries where clients can order prints will take care of their own shipping. But if you charge your client shipping,
this is where the shipping rules in this guide apply to you.


Pennsylvania Sales Tax for Photographers

Below are the sales tax requirements for Photographers in Pennsylvania broken out. You will find supporting links and resources at the bottom of this post.


✅Pennsylvania Nexus

physical presence; providing service in person, having a physical location, a warehouse, inventory, traveling salespeople or representatives, attending trade shows, or taking orders or deposits in person.


✅Pennsylvania Source

Pennsylvania is an origin-based sales tax state. This means you charge sales tax based on the location of the business rather than that of the purchaser.


✅Pennsylvania Physical Goods

Pennsylvania imposes sales tax on physical/tangible goods.


✅Pennsylvania Digital goods

Pennsylvania imposes sales tax on digital products delivered to a customer electronically, digitally, or by streaming.


✅Pennsylvania Services

Pennsylvania imposes sales tax on photography services.


✅Pennsylvania Shipping

Pennsylvania does apply sales tax to shipping costs. The rule of thumb is that if what you’re selling is subject to tax, then the shipping charges are also subject to tax.


📆Monthly liability / Filing Frequency:

$2,400.00 + / Monthly
$300.00-2,400 / Quarterly
$0.00-299.99 / Semi-Annual

📆Monthly

Due 20th day of the following month

📆Quarterly

PERIOD/DUE

Q1 (JAN – MAR) / APR20
Q2 (APR – JUN) /JUL20
Q3 (JUL – SEP) / OCT20
Q4 (OCT – DEC) /JAN20

📆Semi-Annually

JAN-JUN / AUG20
JUL-DEC / FEB20*(Following year)


LINKS

Pennsylvania Department of Revenue

⭐️LookUp Rates
⭐️Pennsylvania Code – Photographers and Photofinishers
⭐️Pennsylvania Dept of revenue – Digital Products


Have another question you’d like me to add to this list?

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– Tiffany Bastian

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