Pennsylvania criminalizes sales tax zappers

In all states with a sales tax, it’s against the law for retailers to not collect and remit applicable sales tax. Increasingly, however, states are enacting legislation that criminalizes the use of automated sales suppression devices, also called tax zappers or phantomware. Sales suppression devices are illegal in South Dakota as of March 10, 2016, and in Pennsylvania as of July 13, 2016.

Under HB 1198, “Any person who, for commercial gain, sells purchases, installs, transfers, or possess [in Pennsylvania] an automated sales suppression device or zapper or phantomware with the knowledge that the sole purpose of the device is to defeat or evade the determination of an amount due” faces imprisonment and/or a fine. Anyone found guilty of such an offense is also liable for all unpaid taxes, plus any interest and penalties due. See the text of the bill for additional details, and click here for more information about sales suppression devices.

Instead of trying to avoid sales and use tax, businesses should strive to collect and remit the correct amount of tax for every transaction. Sales tax software-as-a-service facilitates compliance in all state. Learn how it works.