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Compensation for paying Pennsylvania sales tax on time

  • Jul 29, 2016 | Gail Cole

 Pay your sales tax on time and you'll be compensated.

Businesses that file and pay Pennsylvania sales tax promptly are rewarded for it, but not as much as they used to be.

Beginning August 1, 2016, the vendor compensation rate is reduced to the lesser of 1% of sales tax collected, or:

  • $25 for monthly filers
  • $75 for quarterly filers
  • $150 for semiannual filers

Tax amnesty

Businesses and individuals that don’t pay the taxes owned on time — or at all — won’t be rewarded for it, but they will have a window of opportunity to avoid penalties and fees and a portion of the interest owed. The Pennsylvania Department of Revenue has been tasked with establishing a tax amnesty program at some point during the 2016-2017 fiscal year. Dates and details have yet to be announced.

Additional details are available in H.B. 1198.

The best way to ensure sales and use tax is paid on time, every time, is to implement sales tax automation like Avalara AvaTax. Learn how it works.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.