61 Pa. Code § 33.4 — Credit and lay-away sales

(a) Tax collection for credit sales. If a sale, with respect to which a tax is required to be collected, is wholly or partly on credit, the seller shall require the purchaser to pay the full amount of the tax due on the entire purchase price at the time the purchase is made or within 30 days thereafter. The failure of the purchaser to remit the tax due to the seller does not relieve the seller of the obligation of reporting the sale and paying to the Commonwealth the tax he should have collected. The tax shall be remitted by the seller with the tax return covering the period in which either the purchase was made or the tax was or should have been collected. (b) Tax collection for lay-away sales. The tax shall be due on a lay-away sale when the seller appropriates the tangible personal property for the purpose of the sale. In these transactions, the seller shall collect the full amount of the tax as measured by the full agreed purchase price at the time the first payment following the appropriation is made under the plan or within 30 days following the appropriation, whichever shall first occur. If, within the same reporting period, the purchaser fails to make the agreed payment, or otherwise forfeits his rights to acquire title and possession under the terms of the agreement and receives a refund of the purchase price, he shall likewise be entitled to a refund of a sales tax paid. However, if the purchaser does not receive a portion of the purchase price from the seller, he may not be entitled to a refund of the sales tax applicable to that amount not returned to him. Reference should also be made to § 33.3 (relating to cancellations, returns, allowances and exchanges). Cross References This section cited in 61 Pa. Code § 34.3 (relating to tax returns). No part of the information on this site may be reproduced for profit or sold for profit. This material has been drawn directly from the official Pennsylvania Code full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.