The Performance Marketing Association just received word last night that a work-around requested by the PMA has been granted by the Pennsylvania Department of Revenue. The sales tax does not have to be collected if it’s a CPC relationship.
The DOR ruling states the following:
“The use of a Pennsylvania publisher does not create nexus. However, if the remote seller is paying for the advertising services based on a percentage of actual sales, nexus is established.”
Simply put, the ruling indicates paying a Pennsylvania on a CPC (cost-per-click) basis is acceptable and doesn’t require remote sellers to collect PA sales tax. If advertisers are able and willing to pay publishers via CPC, the ruling indicates this does not establish nexus. We hope advertisers will consider reinstating PA publishers.
Scott Allan
SVP, Global Marketing