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US Pennsylvania offers foreign sellers sales tax amnesty

  • Mar 9, 2021 | Richard Asquith

The US state of Pennsylvania is offering a sales tax amnesty to non-resident sellers which hold stock in the state.  This is based on the physical nexus test, triggering local taxing obligations if a business holds stock or property in the state. The tax waiver will be available until 8 May 2021, and will cover taxes and penalties due prior to 1 January 2019.

Contact Avalara to learn details of the amnesty, whether you are eligible and how to manage the application process for Pennsylvania or any other state where you may be selling. An application to the state is required, including full disclosure of taxable transactions. Pennsylvania will then evaluate the reduction of taxes and penalties.

The local stocks business model is now common practise in the US and beyond as sellers seek to keep delivery times shortened and ensure a great customer experience. This can be tied with marketplace facilitators such as Amazon.

States target foreign sellers

There is a growing trend for states to focus on missing tax revenues from out-of-state e-commerce merchants, including foreign sellers. Increasingly, this includes withdrawing the distance selling thresholds and making sellers or facilitating marketplaces liable from their first sales.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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