Pennsylvania law requires withholding at a rate of 3.07 percent on non-wage Pennsylvania source income payments made to nonresidents. To file a sales tax return, you must have a Sales and Use Tax account registered with the PA Department of Revenue.The department strongly encourages filing and paying online. This video will demonstrate the process to apply for Pennsylvania business taxes. The state sales tax rate is 6 percent, although some goods and services are exempt. If you are exempt from Virginia income tax, complete the Form VA-4 and give it to your employer. Resolving withholding errors. Many states provide limited time periods when sales tax is waived or reduced on categories of items. You must also see the exemption certificate before completing the sale. An out-of-state seller may be required to remit sales or use tax on sales into Michigan if the seller has nexus under amendments to the General Sales Tax Act.