For our PA customers, we feel obligated to explain our position on sales tax. Being native Philadelphians, Esther and I understand that you work hard for your money and any extra costs and hidden, unnecessary fees are eliminated from our invoices - including sales tax.
How can we get away with not charging sales tax? According to the PA Department of Revenue's website:
Sales and Use tax is imposed on the retail sale, consumption, rental or use of tangible personal property in Pennsylvania (unless purchaser is exempt). The tax is also imposed on certain services relating to such property and on specific business services.
According to Ruling No. SUT-06-014, Computer Consulting and Programming Services, reissued 7/20/2011, Fox Design Werx renders nontaxable computer programming and consulting services under it's own supervision and not under the direct supervision of our clients, which is a requirement of a help supply service.
Pursuant to Ruling No. SUT-10-005, Taxability of Web-Based Services, issued 11/8/2010, we render all web hosting services as non-taxable, since our servers are not located within the State of Pennsylvania.
Finally, pursuant to Ruling No. SUT-12-001, Cloud Computing, issued 5/31/2012, clients accessing canned software is taxable when the client is located in Pennsylvania, regardless of where the server hosting the software is located.
As such, you'll never see a charge for sales tax on any of our invoices. However, please note that any sales of computer hardware or software ("tangible goods") from one of our vendors to any of our customers where Fox Design Werx is the intermediary, is considered taxable by law and tax of 6% will be assessed (7% on services initiated in Allegheny County, 8% on services initiated in Philadelphia county).
This sales tax rate does not apply for services rendered outside the state, however, it is the client's responsibility to understand and comply with their own state's laws regarding Internet sales and use taxes.
Source: https://revenue-pa.custhelp.com/app/answers/detail/a_id/203/~/how-do-i-know-which-items-or-services-are-subject-to-pennsylvania-sales-tax%3F