Form PA REV-72 is the application for charitable organizations to gain an exemption from paying Pennsylvania sales and use tax. If approved, your organization will receive a sales tax exemption number which is good for 5 years.
If your organization meets the following guidelines, we believe it is worth applying for sales tax exemption with the Pennsylvania Department of Revenue.
The Pennsylvania sales tax rate is 6% on taxable goods and services. Purchases made in or for use in Allegheny County are subject to an additional 1% local sales tax. Purchases made in or for use in Philadelphia are subject to an additional 2% local sales tax.
Pennsylvania use tax is the self-regulated version of sales tax. When the seller does not appropriately charge your organization for sales tax, you are responsible for calculating and remitting to the government the sales tax due. This can happen when your organization purchases over the internet, through toll-free numbers, from mail order catalogs, and from out-of-state locations. The Pennsylvania use tax rules are the same as the sales tax rules - the same definition of taxable items and the same tax rates apply. Your Certificate of Sales Tax Exemption will also avoid these tax obligations.
When making purchases, vendors will ask for your sales tax exemption number and signature on Pennsylvania Exemption Certificate (PA REV-1220) and/or Exempt Organization Declaration of Sales Tax Exemption (PA REV-1715).