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We invoiced an international customer for a shipment picked up at PA location for export to the United Arab Emirates. Was it correct to charge PA sales tax?

Full Question: We invoiced an international customer for equipment. The shipment was picked up at our York, Pennsylvania location for export to the United Arab Emirates. We charged the customer Pennsylvania sales tax. Is this correct? Should we not have charged sales tax due to the fact that this was a shipment for export?

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Answer:

Diane Yetter photoThe determination as to whether PA tax is due will depend on who picked up the goods for export. If the customer or the customers agent (other than a interstate commerce carrier) picked up the goods at your location, then PA tax is due. If you arranged shipment and shipped the goods out of PA, then under the Import-Export Clause, the sale would qualify for exemption.

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