Pennsylvania’s sales tax is imposed only on the “service fee” portion of charges for “employment agency services,” “help supply services,” and “interior office building cleaning services” (collectively, the “Services”). See 72 P.S. §§ 7201(g)(6), 7204(51). The taxable “service fee” is the total charge for the Services less the “costs” of the supplied employee which are
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Buyer Beware! Commonwealth Court Holds Purchaser of Restaurant Assets and Liquor License in Bulk Sale Transaction Liable for Unpaid Sales and Use Taxes Owed by Seller
By Sharon Paxton on
Posted in Sales and Use Tax
In HUF Restaurant, Inc. v. Commonwealth, Docket No. 394 F.R. 2018 (04/19/2024), a three-judge panel of the Commonwealth Court of Pennsylvania ruled that HUF Restaurant, Inc. (“HUF”), which had purchased restaurant assets and a liquor license from Zola New World Bistro, Ltd. (“Zola”) in a bulk sale transaction, was liable for unpaid sales and use…
Commonwealth Court Denies Manufacturing Exclusion and Help Supply Services for Sales and Use Tax
By Meghan Holjes on
Posted in Sales and Use Tax
In Quality Driven Copack, Inc. v. Commonwealth of Pennsylvania, No. 879 F.R. 2013 (decided December 29, 2021) (opinion not reported), the Pennsylvania Commonwealth Court (the “Commonwealth Court”) held that for the Taxpayer to qualify under the manufacturing exclusion for sales and use tax purposes, there must be a physical change in form to the…
PA DOR Issues Sales Tax Guidance for Malt or Brewed Beverage Manufacturers
By Paul Morcom on
Posted in Sales and Use Tax
On July 27, 2018, the Pennsylvania Department of Revenue (“Department”) issued Tax Bulletin – Sales and Use Tax 2018-02 regarding taxpayers engaged in the manufacture and sale of malt or brewed beverages. The Bulletin is intended to help clarify when a manufacturer of malt or brewed beverages must collect sales tax on the sale of…