Pennsylvania DOR Explains Taxability and Sourcing of Help Supply Services Provided Remotely

Sales and Use Tax Bulletin 2021-03, Penn. Dept. of Rev. (9/16/21). The Pennsylvania Department of Revenue (Department) issued guidance for those “responsible for charging, collecting, remitting, or accruing sales or use tax of the taxability of remote help supply services” in Pennsylvania – concluding that “effective immediately” whether the delivery or use occurs in Pennsylvania under more traditional arrangements (i.e., supplied help physically reporting to a location of the purchaser and supervision is supplied in person) or remotely through modern technology, “the same principles determine whether the delivery or use of the help supply services” occurs in Pennsylvania. That is, “where delivery or use occurs controls” under both traditional in-person and remote working arrangements. Under more traditional arrangements, the Department explains that it generally looks to whether the underlying employee is reporting for work at a location in Pennsylvania. However, using some working examples to illustrate, the Department explains that “where the work is delivered to” is not where the work is conducted if the help supply employee is not physically working at a location of the purchaser.

Source Deloitte

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