The PA Exemption Certificate is a document used in Pennsylvania to claim exemption from state and local sales and use taxes, including hotel occupancy and vehicle rental taxes. It is important for buyers who qualify under specific categories, such as nonprofit organizations or government entities, to ensure they are not charged these taxes on eligible purchases. To fill out the form and claim your exemption, click the button below.
The Pennsylvania Exemption Certificate, also known as the REV-1220, serves as a crucial document for individuals and organizations seeking tax exemptions on various transactions within the state. This form is specifically designed to facilitate exemptions from state and local sales and use taxes, hotel occupancy taxes, public transportation assistance taxes, and vehicle rental taxes. It is essential to note that the form cannot be utilized to obtain a Sales Tax Account ID or to claim exemption status for vehicle registration. Users can select either a one-time exemption for a specific transaction or a blanket exemption for multiple transactions. The certificate requires detailed information about the seller, the purchaser, and the reasons for the exemption, which may include the nature of the goods or services purchased and the specific tax exemptions applicable. Misuse of the form can lead to severe penalties, including fines and imprisonment, underscoring the importance of accurate and honest completion. Additionally, the seller must retain this certificate for at least four years to validate the exemption, ensuring compliance with Pennsylvania tax regulations.
REV-1220 (TR) 07-23 (FI)
PENNSYLVANIA EXEMPTION
CERTIFICATE
STATE AND LOCAL SALES AND USE TAX
STATE 6% AND LOCAL 1% HOTEL OCCUPANCY TAX
PUBLIC TRANSPORTATION ASSISTANCE TAXES AND FEES (PTA)
VEHICLE RENTAL TAX (VRT)
ADDITIONAL LOCAL, CITY, COUNTY HOTEL TAX *
This form cannot be used to obtain a Sales Tax License ID, PTA License ID or Exempt Status.
(Please Print or Type)
Read Instructions
On Reverse Carefully
THIS FORM MAY BE PHOTOCOPIED – VOID UNLESS COMPLETE INFORMATION IS SUPPLIED
CHECK ONE: PENNSYLVANIA TAX UNIT EXEMPTION CERTIFICATE (USE FOR ONE TRANSACTION) PENNSYLVANIA TAX BLANKET EXEMPTION CERTIFICATE (USE FOR MULTIPLE TRANSACTIONS)
Name of Seller, Vendor or Lessor
Street
City
State
ZIP Code
NOTE: Do not use this form for claiming an exemption on the registration of a vehicle. To claim an exemption from tax for a motor vehi- cle, trailer, semi-trailer or tractor with the PA Department of Transportation, Bureau of Motor Vehicles, use one of the following forms:
FORM MV-1, Application for Certificate of Title (first-time registrations)
FORM MV-4ST, Vehicle Sales and Use Tax Return/Application for Registration (other registrations)
Property and services purchased or leased using this certificate are exempt from tax because: (Select the appropriate paragraph from the back of this form, check the corresponding block below and insert information requested).
1.
Property or services will be used directly and predominately by purchaser in performing purchaser's operation of:
2.
Purchaser is a/an:
holding Sales Tax Exemption Number
3.
Property will be resold under License ID
(If purchaser does not have a PA Sales Tax License ID, include a
statement under Number 8 explaining why a number is not required).
4.
Property or services will be used directly and predominately by purchaser performing a public utility service.
PA Public Utility Commission PUC Number
and/or
U.S. Department of Transportation MC/MX
5.
Exempt wrapping supplies, License ID
(If purchaser does not have a PA Sales Tax License ID, include
a statement under Number 8 explaining why a number is not required).
6.
Canned computer software purchased by a financial institution subject to the Bank and Trust Company Shares Tax (Article VII) or the Mutual Thrift
Institutions Tax (Article XV).
7.
Canned computer software licenses that are billed to a PA address but used outside of PA. The total number of software licenses purchased for
invoice #
is
. The total number of users accessing and using the software outside PA is
.
8.
Other
(Explain in detail. Additional space on reverse side).
I am authorized to execute this certificate and claim this exemption. Misuse of this certificate by seller, lessor, buyer, lessee or their representative is punishable by fine and imprisonment.
Name of Purchaser or Lessee
Signature
EIN
Date
1.ACCEPTANCE AND VALIDITY:
For this certificate to be valid, the seller/lessor shall exercise good faith in accepting this certificate, which includes: (1) the certificate shall be completed properly; (2) the certificate shall be in the seller/lessor's possession within 60 days from the date of sale/lease; (3) the certificate does not contain infor- mation which is knowingly false; and (4) the property or service is consistent with the exemption to which the customer is entitled. For more information, refer to Exemption Certificates, Title 61 PA Code §32.2. An invalid certificate may subject the seller/lessor to the tax.
2.REPRODUCTION OF FORM:
This form may be reproduced but shall contain the same information as appears on this form.
3.RETENTION:
The seller or lessor must retain this certificate for at least four years from the date of the exempt sale to which the certificate applies.
IMPORTANT: DO NOT RETURN THIS FORM TO THE PA DEPARTMENT OF REVENUE.
4.NONPROFIT EXEMPT ORGANIZATIONS:
This form may be used in conjunction with form REV-1715, Exempt Organization Declaration of Sales Tax Exemption, when a purchase of $200 or more is made by an organization which is registered with the PA Department of Revenue as an exempt organization. These organizations are assigned an exemption number, beginning with the two digits 75 (example: 75000000).
GENERAL INSTRUCTIONS
Those purchasers set forth below may use this form in connection with the claim for exemption for the following taxes:
a.State and local sales and use tax;
b.PTA rental fee or tax on leases of motor vehicles;
c.Hotel occupancy tax (state 6%, Philadelphia 1%, Allegheny 1%) if referenced with the symbol (●);
d.PTA fee on the purchase of tires if referenced with the symbol (+);
e.Vehicle rental tax (VRT).
EXEMPTION REASONS
1.) Property and/or services will be used directly and predominately by pur- chaser in performing purchaser's operation of:
A.Manufacturing
B.Mining
C.Dairying
D.Processing
E.Farming
F.Shipbuilding
G.Timbering
This exemption is not valid for property or services used in: (a) construct- ing, repairing or remodeling of real property, other than real property used directly in exempt operations; or (b) maintenance, managerial, administra- tive, supervisory, sales, delivery, warehousing or other nonoperational activities. This exemption is not valid for vehicles that are required to be registered under the Vehicle Code, as well as supplies and repair parts for such vehicles, the PTA tire fee, and certain taxable services.
2.) Purchaser is a/an:
+A. Instrumentality of the commonwealth (to include public schools and state universities).
+B. Political subdivision of the commonwealth (includes townships and boroughs).
+l C. Municipal authority created under the Municipality Authorities Acts.
+l D. Electric cooperative corporations created under the Electric Cooperative Law of 1990.
lE. Cooperative agricultural associations required to pay corpo- rate net income tax under the Cooperative Agricultural Association Corporate Net Income Tax Act (exemption not valid for registered vehicles).
+ l F. Credit unions organized under Federal Credit Union Act or Commonwealth Credit Union Act.
+l G. U.S. government, its agencies and instrumentalities.
l H. Federal employee on official business (exemption limited to hotel occupancy tax only. A copy of orders or statement from supervisor must be attached to this certificate).
I.School bus operator (This exemption certificate is limited to the purchase of parts, repairs or maintenance services upon vehicles licensed as school buses by the PA Department of Transportation).
J.Charter Schools and Community Colleges.
Renewable Entities beginning with “75”:
K.Religious Organization
L.Nonprofit Educational Institution
M.Charitable Organization
Permanent Exemptions beginning with the two numbers “75”:
N.Volunteer Fire Company
O.Relief Association
Special Exemptions
P.Direct Pay Permit Holder
Q.Individual Holding Diplomatic ID
R.Keystone Opportunity Zone (beginning with two digit 72 account number)
S.Tourist Promotion Agency
Exemptions for exempt organizations K through S are limited to purchases of tangible personal property or services for use and not for sale. Exempt organizations K - O above, shall have an sales tax exemption certificate number assigned by the PA Department of Revenue. Exempt organiza- tions K-O above, are not exempt for purchases used for the following: (1) constructions, improvement, repair or maintenance or any real property, except supplies and materials used for routine repair or maintenance of the real property; (2) any unrelated activities or operation of a public trade or business; or (3) equipment used to maintain real property.
3.) Property and/or services will be resold or rented in the ordinary course of purchaser's business. If purchaser does not have a PA Sales Tax License ID (8 digit number assigned by the department), complete Number 8 explaining why such number is not required. This exemption is valid for property or services to be resold: (1) in original form; or (2) as an ingredient or component of other property.
4.) Property or services will be used directly and predominately by purchaser in the production, delivery or rendition of public utility services as defined by the PA Utility Code.
This exemption is not valid for property or services used for the following:
(1)construction, improvement, repair or maintenance of real property, other than real property used directly in rendering the public utility services; or (2) managerial, administrative, supervisor, sales or other nonopera- tional activities; or (3) vehicles, as well as supplies and repair parts for such vehicles, unless the predominant use is for providing a common car- rier service; or (4) tools and equipment used but not installed in mainte- nance of facilities or direct use equipment. Tools and equipment used to repair "direct use" property are exempt from tax.
5.) Vendor/seller purchasing wrapping supplies and nonreturnable containers used to wrap property which is sold to others.
6.) Canned computer software or services to canned computer software directly utilized in conducting the business of banking purchased by a financial institution subject to the Bank and Trust Company Shares Tax (Article VII) or the Mutual Thrift Institutions Tax (Article XV).
7.) Seller is required to collect tax on canned software accessed remotely when the user is located in PA. If the billing address is a PA address, the presumption is that all users are located in PA. Purchaser is responsible for apportioning and remitting the tax due to each taxing jurisdiction and must provide the total number of licenses purchased and the number of those licenses used outside PA on Line 8. Please note that any unused licenses will be considered to be allocated to PA.
8.) Other (Attach a separate sheet of paper if more space is required).
*Employees or representatives of the Commonwealth traveling on Commonwealth duty are exempt from any taxes on hotel stays or room rentals imposed by local governments that are in addition to the 6% state tax and the 1% Philadelphia and Allegheny County hotel occupancy tax.
Filling out the Pennsylvania Exemption Certificate form is essential for ensuring that your transactions are tax-exempt when applicable. This process requires careful attention to detail, as inaccuracies could lead to complications. Follow the steps outlined below to complete the form correctly.
Once the form is completed, retain it for your records. Do not send it to the Pennsylvania Department of Revenue. Ensure that the seller or lessor keeps the certificate for at least four years from the date of the exempt sale. This is crucial for compliance and to avoid any potential tax liabilities.
What is the purpose of the PA Exemption Certificate (REV-1220)?
The PA Exemption Certificate, commonly known as REV-1220, serves to exempt certain purchases from state and local sales and use taxes, including hotel occupancy taxes and vehicle rental taxes. It is designed for use by qualifying purchasers who meet specific criteria outlined in the form. This certificate can be used for either a single transaction or multiple transactions, depending on the needs of the purchaser.
Who is eligible to use the PA Exemption Certificate?
Eligibility for using the PA Exemption Certificate includes various entities such as:
Each category has specific requirements and limitations, so it is essential to review these details carefully before using the form.
What information is required to complete the PA Exemption Certificate?
To properly complete the PA Exemption Certificate, the following information must be provided:
It is crucial that all information is accurate and complete to ensure the validity of the certificate.
How long must the seller retain the PA Exemption Certificate?
Sellers or lessors are required to retain the PA Exemption Certificate for a minimum of four years from the date of the exempt sale. This retention period is important for compliance and auditing purposes. Failure to retain the certificate may result in the seller being liable for the tax that was exempted.
Can the PA Exemption Certificate be photocopied?
Yes, the PA Exemption Certificate can be photocopied. However, it must contain all the same information as the original form. It is essential to ensure that any reproduced copies are complete and legible to maintain their validity.
What are the consequences of misusing the PA Exemption Certificate?
Misuse of the PA Exemption Certificate can lead to serious consequences. Individuals or entities that improperly use the certificate may face penalties, including fines and imprisonment. It is imperative to use the certificate only for transactions that genuinely qualify for exemption to avoid these repercussions.
When filling out the Pennsylvania Exemption Certificate (REV-1220), individuals often make mistakes that can lead to complications. One common error is failing to select the appropriate type of exemption certificate. The form provides options for either a one-time transaction or multiple transactions. Not checking the correct box can result in the certificate being invalidated.
Another frequent mistake involves incomplete information. Each section of the form must be filled out thoroughly. For instance, if the name of the seller, vendor, or lessor is missing, or if the address is not complete, the form may be rejected. It is crucial to ensure that all fields are filled out accurately to avoid delays or issues with tax exemptions.
People often overlook the requirement for a Pennsylvania Sales Tax Account ID. If the purchaser does not have this ID, they must provide an explanation under Number 8 of the form. Neglecting to include this information can lead to questions about the legitimacy of the exemption claim.
Additionally, individuals sometimes misuse the exemption certificate by attempting to claim exemptions for ineligible purchases. The form specifies certain categories of property and services that are exempt. For example, vehicles that need to be registered under the Vehicle Code do not qualify for this exemption. Misunderstanding these rules can result in penalties.
Lastly, many individuals forget to sign and date the form. The signature of the purchaser or lessee is essential for validating the exemption claim. Without a signature, the form is incomplete and cannot be processed. Ensuring all necessary signatures are included is vital for a smooth transaction.
The Pennsylvania Exemption Certificate (REV-1220) is an essential document for those looking to claim tax exemptions on certain purchases. However, it is often accompanied by other forms and documents that further clarify or support the exemption claims. Below is a list of commonly used documents alongside the PA form, each serving a specific purpose in the exemption process.
Understanding these forms and their specific uses can significantly streamline the process of claiming tax exemptions in Pennsylvania. Each document plays a vital role in ensuring compliance and facilitating the accurate reporting of tax obligations. When utilized correctly, these forms can help individuals and organizations save on costs while adhering to state regulations.
The Pennsylvania Exemption Certificate (REV-1220) serves a specific purpose in the realm of sales and use tax exemptions. However, it shares similarities with several other important documents. Here’s a look at six documents that are akin to the PA form, detailing how they relate:
When filling out the Pennsylvania Exemption Certificate (REV-1220), it is crucial to follow specific guidelines to ensure accuracy and compliance. Here’s a list of what to do and what to avoid:
Understanding the Pennsylvania Exemption Certificate (REV-1220) is essential for those looking to navigate sales and use tax exemptions. However, several misconceptions can lead to confusion. Here are nine common misconceptions about the PA form, along with clarifications:
By understanding these misconceptions, individuals and organizations can better navigate the complexities of tax exemptions in Pennsylvania.
Key Takeaways for Filling Out the PA Exemption Certificate Form