To get a reseller permit in Pennsylvania, you register for a Sales Tax License with the Department of Revenue through the myPATH online portal. Registration is free. The license does two things at once: it authorizes you to collect Pennsylvania’s 6% sales tax from your customers, and it lets you buy inventory tax-free from suppliers by handing them a completed Pennsylvania Exemption Certificate (Form REV-1220).
Most people searching for a “reseller permit” in Pennsylvania are looking for the standard Sales, Use, and Hotel Occupancy Retail Tax License. That is the one covered below.
Who Needs a Pennsylvania Sales Tax License
You need a license if you have a physical presence in Pennsylvania and sell taxable goods or services, or if you’re a remote seller whose Pennsylvania gross sales exceed $100,000 in a calendar year. Pennsylvania uses only the $100,000 sales figure to trigger economic nexus; there is no separate transaction-count threshold.
The state’s base sales tax rate is 6%. Businesses in Philadelphia collect an additional 2% for an 8% total, and those in Allegheny County collect an additional 1% for a 7% total. Some categories are exempt from sales tax entirely, including most clothing, groceries, and prescription medicine, so you would not charge tax on those items even with a license in hand.
The Department of Revenue issues a few license variants depending on your situation. Out-of-state sole proprietorships and partnerships without a permanent Pennsylvania location apply for a Transient Vendor Certificate. Businesses selling only to other retailers, never to consumers, use a Wholesale Certificate. Anyone renting or granting space to vendors at shows or events needs a Promoter License. The standard retail tax license fits most resellers.
How to Apply Through myPATH
Registration runs through the PA-100, officially the Pennsylvania Enterprise Registration Form. There is no application fee. Go to the myPATH website and choose “Pennsylvania Online Business Tax Registration” under the Registration section. You don’t need to create a myPATH account first; new businesses can register without logging in.
Have the following ready before you start:
- Your legal business name, any “doing business as” name, and your physical and mailing addresses.
- Your entity type: sole proprietorship, partnership, LLC, corporation, or other structure.
- Your Federal Employer Identification Number (FEIN). Sole proprietors without employees can use their Social Security Number instead.
- A description of the goods or services you plan to sell.
Online applications typically process within a couple of business days, and the physical license arrives by mail shortly after. You can also print the PA-100 and mail it in, but paper processing is much slower. The Department of Revenue notes that paper form adjustments can take up to four months, so the online route is strongly preferred.
Buying Inventory Tax-Free With Form REV-1220
Once your license is issued, the mechanism that lets you buy inventory tax-free is the Pennsylvania Exemption Certificate, Form REV-1220. You complete the form and give it to your supplier; the supplier keeps it on file and stops charging you sales tax on qualifying purchases.
The certificate comes in two versions. A unit certificate covers a single purchase. A blanket certificate covers all future purchases from the same vendor and is the practical choice for ongoing supplier relationships, since you fill it out once per vendor and it stays on file.
The resale exemption covers items you buy specifically to resell, rent, or lease in the regular course of business. It also covers components or ingredients that become physically incorporated into a product you sell. It does not cover anything you plan to use yourself or consume in your business operations. Office supplies, equipment for your shop, and inventory you pull off the shelf for personal use are all taxable.
This is where resellers most often get into trouble. If you buy something tax-free under your exemption certificate and then use it instead of reselling it, you owe use tax to the state at the same rate as sales tax. You report and pay that use tax on your regular sales tax return. Beyond the tax itself, issuing a false or fraudulent exemption certificate is a misdemeanor in Pennsylvania, punishable by a fine up to $1,000, imprisonment up to one year, or both.
What Comes After You Get the Permit
The license is only the starting point. Once you’re registered, Pennsylvania expects you to collect tax on taxable sales, file returns, and keep records.
Filing Returns
Pennsylvania assigns a filing frequency based on your third-quarter (July through September) tax liability, reviewed annually. Businesses reporting $600 or more in that quarter file monthly; between $75 and $599.99 file quarterly; less than $75 file semi-annually. New businesses start on a quarterly schedule.
Returns are due by the 20th of the month following the end of your reporting period, and all returns must be filed electronically through myPATH. If the 20th falls on a weekend or holiday, the deadline moves to the next business day.
Keeping Records
Keep sales tax records for at least three years from the end of the calendar year they relate to. Exemption certificates you collect from buyers, and the certificates you issue to your suppliers, have a longer retention window: keep those for at least four years from the date of the exempt sale. Electronic records are acceptable as long as they clearly reflect your income and expenses, so scanned certificates and digital sales records are fine.
Renewing the License
Pennsylvania sales tax licenses are not permanent. The Department of Revenue requires renewal at least every five years, and it will not renew your license if you have any outstanding tax balances or unfiled returns. Staying current on filings is the simplest way to avoid a lapse.
If you stop making taxable sales or close the business, file a final return for your last reporting period and then formally cancel the account through myPATH or by mailing Form REV-1706. Leaving the account open means the Department still expects returns from you, and missing those returns triggers late-filing penalties even when you owe no tax.
If You’re Buying an Existing Business
If you’re acquiring an existing business rather than starting fresh, the seller’s sales tax history matters to you before closing. Pennsylvania can hold a successor business responsible for the prior owner’s unpaid sales tax obligations. Request a tax clearance from the Department of Revenue confirming the seller has no outstanding sales tax liabilities before you finalize the purchase. If you skip that step and the seller owes back taxes, you could be personally liable for those debts up to the amount of your purchase price.