Sales Tax as commecial printers

[bcaldwell]

I live in Pennsylvania and I was wondering what the tax law is for commerical printers in PA. What types of jobs do you need to add sales tax to if any. If you are mailing postcards or newsletters for your customers is there sales tax added to that sale. I read the PA tax code but for me it is kind of hard to understand. Does anybody know about this or is there a better place to look this information up.

[beachbum]

PA Sales Tax must be imposed on your printing sales as well as freight or delivery charges unless the transaction is subject to an exemption. There are three exemptions you'll frequently encounter. First is the direct mail exemption. If the materials are predominately distributed through the mail then no tax is due. Secondly, registered charitable organizations are exempt and finally if your customer resells the printing the resale exemption would apply. I suggest getting a copy of the PA Tax Code in which you'll find all the regulations relating the collection and payment of sales and use taxes in PA.

[bcaldwell]

I have read the tax code for PA and was looking for clarity from someone that is in the industry. I am familiar with the exemptions for direct mail, charities, etc.

In reading the code as long as the printer supplies all materials to produce the job it then falls under manufacturing and is exempt from sales tax. Now if the customer would supply the paper then sale tax would need to be collected. I am talking about commercial printing not quick print or copy shop, I know that sales tax would apply in those situations. That is what I get when I read the code.

Thanks

[JaimeZ]

bcaldwell,

I doubt the state of PA will make a distinction between a commercial printer and a quick printer in regards to sales tax. If your client is picking it up or your shipping it within the state you're responsible for collecting the sales tax from your client--at least that's the way it works in CA. The logic is that you are supplying the end product to the client and therefore it is subject to the sales tax. A manufacturer of equipment usually distributes to a middle man and would not be required to collect sales tax, however, if the manufacturer sold the equipment to the end user I bet that they would be required to collect the state's sales tax. Again that's the way it would in CA.