Legal Question in Business Law in Pennsylvania

Tax on my offering?

My neighbor and I incorporated a business with the idea of providing IT consulting services. One area we support is hosting websites. Basically, I subscribe to a hosting site as a reseller and pay a monthly fee for server storage, than I ''sublet'' my storage as virtual private servers pointed to a domain name, and charge my customer a monthly fee. Do I have to also charge a tax on this offering?


Asked on 12/14/06, 12:58 pm

1 Answer from Attorneys

Douglas Humes Law Office of Douglas P. Humes

Re: Tax on my offering?

Go straight to the source and ask the horse:

"The [Pennsylvania] sales and use tax is imposed on the retail sale, consumption, rental or use of tangible personal property in Pennsylvania. The tax is also imposed on certain services relating to such property and on the charge for specific business services. Major items exempt from the tax include food (not ready-to-eat), candy and gum, most wearing apparel, textbooks, computer services, drugs, sales for resale and residential heating fuels such as oil, electricity, gas, coal and firewood."

"The Department publishes a booklet, Retailers Information (REV-717 AS) that contains a listing of taxable and nontaxable items and a description of taxable services.

The booklet can be viewed online or ordered through our forms ordering service at 1 * 800 * 362 * 2050. Or you can email your order to [email protected].

Click on this link to view the booklet. http://www.revenue.state.pa.us/revenue/lib/revenue/rev-717.pdf"

From the Dept of Revenue web site.

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Answered on 12/14/06, 3:27 pm


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