Content Overview
The Pennsylvania Exemption Certificate, commonly referred to as the PA form, plays a crucial role in facilitating tax exemptions for various transactions within the state. This form is specifically designed to exempt buyers from state and local sales taxes, hotel occupancy taxes, and certain public transportation assistance taxes. It is essential for individuals and organizations to understand that the PA form cannot be used to obtain a Sales Tax Account ID or to claim exempt status. Instead, it serves two primary purposes: the Pennsylvania Tax Unit Exemption Certificate for single transactions and the Pennsylvania Tax Blanket Exemption Certificate for multiple transactions. To properly utilize this form, purchasers must indicate their reason for the exemption, which may include usage in manufacturing, nonprofit activities, or resale purposes. Moreover, it is important to note that the certificate must be completed accurately and retained by the seller or lessor for a minimum of four years. Misuse of the form can lead to significant penalties, underscoring the importance of compliance and understanding the specific requirements laid out in the accompanying instructions.
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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
Street City State ZIP Code
REV-1220 (TR) 07-23 (FI)
Read Instructions
On Reverse Carefully
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.
THIS FORM MAY BE PHOTOCOPIED – VOID UNLESS COMPLETE INFORMATION IS SUPPLIED
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).
(Please Print or Type)
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.
l E. 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.
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
Form Specifications
| Fact Name | Details |
|---|---|
| Form Title | Pennsylvania Exemption Certificate |
| Form Number | REV-1220 (TR) 05-20 (FI) |
| Applicable Taxes | State and local sales and use tax, hotel occupancy tax, public transportation assistance taxes and fees, vehicle rental tax |
| Usage | Can be used for one transaction (Tax Unit Exemption) or multiple transactions (Tax Blanket Exemption) |
| Governing Law | Title 61 PA Code §32.2 |
| Retention Period | Sellers or lessors must retain the certificate for at least four years from the date of the exempt sale |
| Reproduction | The form may be photocopied but must contain the same information as the original |
| Exemption for Nonprofits | Can be used with form REV-1715 for purchases of $200 or more by registered exempt organizations |
| Misuse Penalty | Misuse of this certificate can result in fines and imprisonment |
Pa: Usage Guidelines
Completing the Pennsylvania Exemption Certificate (REV-1220) is a straightforward process that requires careful attention to detail. This form is essential for individuals or organizations claiming exemptions from certain taxes in Pennsylvania. Below are the steps to successfully fill out the form.
- Obtain the Form: Download or print the Pennsylvania Exemption Certificate (REV-1220) from the Pennsylvania Department of Revenue website.
- Choose the Type of Certificate: Indicate whether you are using the form for a single transaction or multiple transactions by checking the appropriate box at the top of the form.
- Enter Seller Information: Fill in the name, street address, city, state, and ZIP code of the seller, vendor, or lessor.
- Select Exemption Reason: Choose the reason for the exemption from the list provided on the form. Check the corresponding box and provide any additional information requested.
- Provide Purchaser Information: Fill in the name of the purchaser or lessee, their street address, city, state, and ZIP code.
- Signature and Date: The purchaser or lessee must sign and date the form. Ensure that the signature is placed after printing the form.
- Retention of the Form: Keep the completed form for at least four years from the date of the exempt sale, as it may be required for future reference.
Once the form is filled out, it should not be returned to the Pennsylvania Department of Revenue. Instead, the seller or lessor must retain it for their records. This ensures compliance with Pennsylvania tax regulations and helps avoid potential issues regarding tax exemptions.
Your Questions, Answered
What is the purpose of the PA Exemption Certificate (REV-1220)?
The PA Exemption Certificate is used to claim exemption from state and local sales and use taxes, hotel occupancy taxes, and certain public transportation assistance taxes. It is essential for transactions where eligible purchasers seek to avoid these taxes on specific purchases or leases.
Who can use the PA Exemption Certificate?
Eligible users include various organizations and individuals, such as nonprofit organizations, government entities, and businesses that will resell or rent the purchased property or services. Specific categories are outlined on the form, including religious organizations, educational institutions, and public utilities.
How do I complete the PA Exemption Certificate?
To complete the certificate, ensure that all required fields are filled out accurately. Indicate whether it is for a single transaction or multiple transactions, provide the seller's information, and select the appropriate exemption reason. A signature from the purchaser is also necessary to validate the certificate.
What happens if the certificate is not filled out correctly?
If the certificate is not completed properly, it may be deemed invalid. This could result in the seller or lessor being liable for the tax that was supposed to be exempted. It is crucial to follow the instructions carefully to ensure validity.
How long must the seller retain the PA Exemption Certificate?
Sellers or lessors are required to retain the PA Exemption Certificate for at least four years from the date of the exempt sale. This retention is essential for compliance and audit purposes.
Can the PA Exemption Certificate be photocopied?
Yes, the PA Exemption Certificate may be photocopied. However, it must contain all the same information as the original form to remain valid. Incomplete or altered copies may not be accepted.
What should I do if I do not have a PA Sales Tax Account ID?
If you do not have a PA Sales Tax Account ID, you must include a statement explaining why it is not required in the designated section of the form. This is important for validating your claim for exemption.
Is there a limit on the amount of purchase for which the exemption can be claimed?
There is no specific dollar limit stated for the exemption. However, certain rules apply depending on the type of organization making the purchase. For example, nonprofit organizations may need to follow specific guidelines when making purchases over $200.
What should I do if I misuse the PA Exemption Certificate?
Misuse of the PA Exemption Certificate can lead to penalties, including fines and imprisonment. If you suspect misuse, it is important to seek guidance and rectify the situation promptly to avoid further legal complications.
Common mistakes
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Failing to read the instructions on the reverse side of the form can lead to errors.
-
Not selecting the correct type of exemption certificate can cause delays or rejections.
-
Leaving mandatory fields blank, such as the name of the seller or purchaser, can invalidate the form.
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Using the form for vehicle registration exemptions instead of the appropriate forms (MV-1 or MV-4ST) is a common mistake.
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Incorrectly stating the reason for the exemption without proper documentation can result in penalties.
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Failing to include the Sales Tax Account ID when required, or not providing an explanation if one is not needed, can lead to complications.
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Not signing the form after printing can render it invalid.
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Returning the form to the PA Department of Revenue instead of retaining it for four years is a serious error.
Documents used along the form
The Pennsylvania Exemption Certificate (REV-1220) is an important document for individuals and organizations seeking tax exemptions on certain purchases. In addition to this form, there are several other documents that may be required or useful in conjunction with it. Below is a list of these forms, each accompanied by a brief description.
- Form MV-1: This is the Application for Certificate of Title, used for first-time registrations of vehicles in Pennsylvania. It is essential for claiming exemption from sales tax on vehicle purchases.
- Form MV-4ST: This Vehicle Sales and Use Tax Return/Application for Registration is used for other vehicle registrations. It helps in claiming tax exemptions on sales and use tax for vehicles.
- Form REV-1715: The Exempt Organization Declaration of Sales Tax Exemption is utilized by registered nonprofit organizations making purchases over $200 to declare their tax-exempt status.
- Form REV-183: This is the Application for Exempt Use Certificate, which allows certain organizations to claim exemptions on specific purchases related to their operations.
- Form REV-1600: The Sales Tax Exemption Application is for businesses seeking to obtain a sales tax exemption number from the Pennsylvania Department of Revenue.
- Form REV-1220 (Blanket): A variant of the standard exemption certificate, this form is used for multiple transactions over a period, rather than a single purchase.
- Form REV-176: This form is the Pennsylvania Sales Tax Exemption Certificate for use by government entities and certain exempt organizations, allowing them to purchase items without paying sales tax.
- Form REV-1220 (Nonprofit): Specifically for nonprofit organizations, this form allows them to claim exemptions on purchases made for their operations.
- Form REV-724: The Application for Direct Pay Permit, which allows certain businesses to pay sales tax directly to the Department of Revenue instead of the seller.
- Form REV-1500: This is the Pennsylvania Sales and Use Tax Return, which businesses must file to report and remit any sales tax collected during a reporting period.
Understanding these forms can greatly assist individuals and organizations in navigating Pennsylvania's tax exemption process. Each document serves a specific purpose and can help ensure compliance while maximizing potential tax savings.
Similar forms
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Form MV-1, Application for Certificate of Title: This document is used for first-time registrations of vehicles in Pennsylvania. Like the PA form, it requires detailed information about the purchaser and the vehicle. Both forms aim to ensure that the appropriate taxes are applied or exempted based on specific criteria.
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Form MV-4ST, Vehicle Sales and Use Tax Return/Application for Registration: This form is utilized for registering vehicles that are not first-time registrations. Similar to the PA form, it addresses tax exemptions and requires the purchaser to provide necessary identification and justification for the exemption.
-
Form REV-1715, Exempt Organization Declaration of Sales Tax Exemption: Nonprofit organizations use this form to claim sales tax exemptions on qualifying purchases. Both forms require the organization to provide proof of exempt status and detail the nature of the purchase, ensuring compliance with tax laws.
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Form REV-1220, Pennsylvania Sales Tax Exemption Certificate: This form is specifically for claiming exemptions on sales tax for various transactions. It is similar to the PA form in that it outlines specific exemptions and requires the purchaser to complete necessary information to validate the exemption claim.
Dos and Don'ts
When filling out the Pennsylvania Exemption Certificate (REV-1220), attention to detail is crucial. Here are some important dos and don'ts to keep in mind:
- Do read the instructions carefully before starting.
- Do ensure all information is complete and accurate.
- Do check the appropriate exemption reason that applies to your situation.
- Do sign the form after printing to validate your claim.
- Don't use this form for vehicle registration exemptions.
- Don't submit the form to the PA Department of Revenue; keep it for your records.
- Don't provide false information; it can lead to penalties.
- Don't forget to retain the certificate for at least four years.
Misconceptions
Here are seven common misconceptions about the Pennsylvania Exemption Certificate (REV-1220) that you should be aware of:
- This form can be used to obtain a Sales Tax Account ID. Many believe this certificate can help them get a Sales Tax Account ID, but it cannot. It is strictly for claiming exemptions.
- All purchases are exempt from tax with this certificate. Not every purchase qualifies for exemption. Only specific items and services that meet the criteria outlined in the form are eligible.
- Once filled out, the certificate is valid indefinitely. The certificate must be properly completed and retained by the seller for at least four years from the date of the exempt sale. It is not a one-time use document.
- Nonprofit organizations can use this form without restrictions. Nonprofits must also follow specific guidelines and may need to use additional forms to validate their exempt status.
- Misuse of the form has no consequences. Misusing the certificate can lead to penalties, including fines and imprisonment. It is crucial to use it correctly.
- All types of vehicles are exempt from tax. This form does not apply to vehicle registrations. Different forms must be used for vehicle-related exemptions.
- Exemptions are automatic once the form is submitted. The seller must exercise good faith in accepting the certificate. If the form is not completed correctly or if it contains false information, it may be deemed invalid.
Key takeaways
Key Takeaways for Filling Out and Using the PA Exemption Certificate (REV-1220)
- This form is specifically designed for claiming exemptions from state and local sales tax, hotel occupancy tax, and certain other taxes in Pennsylvania.
- It is essential to select the correct type of exemption certificate: either the Pennsylvania Tax Unit Exemption Certificate for one-time transactions or the Pennsylvania Tax Blanket Exemption Certificate for multiple transactions.
- Ensure all required information is filled out accurately, as incomplete forms may be deemed invalid and could result in tax liabilities for the seller or lessor.
- Retain a copy of the completed certificate for at least four years after the exempt sale, as this is a requirement for both the seller and purchaser.
- Do not return the completed form to the Pennsylvania Department of Revenue; it should be kept for your records and provided only to the seller or lessor.