Any business that sells goods or taxable services within the state of Ohio to customers located in Ohio is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in Ohio must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Do you need to get a Sales Tax certificate in the state of Ohio?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct business within Ohio
- You sell or ship products to a buyer in Ohio with vehicles the company owns, rents, or leases
- You have a representative within the state that processes or receives its goods and services
- You have employees physically present in Ohio (including independent contractors, sales persons, representatives, or agents)
- Your business owns, leases, or rents tangible real or personal property that is located within the state
- Your business owns tangible personal property that it rents to a consumer within the state
- Your business has economic presence (businesses who make over $100,000 in sales annually within the state and used a content delivery network)
- Your business has taxable services in the state of Ohio
What constitutes taxable services in the state of Ohio?
The majority of service businesses are not taxable in Ohio. Taxable services would include medical, Janitorial, and transportation Services,
Why do you need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Ohio?
As a wholesale company conducting business in the state of Ohio, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you need to collect sales tax on shipping and handling of merchandise?
Shipping and handling charges are taxable if the item is taxable, even if you exclude it from the purchase price of the item being sold
Is there sales tax on drop shipments in the state of Ohio?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Ohio are required to have sales tax added
Are there any exemptions to taxable items sold?
Certain prescription drugs, medical equipment, raw materials, machinery, utilities and fuel, newspapers, and custom downloaded software are tax exempt
Register for an Ohio sales/use tax number
Ohio state, county, city, & municipal tax rate table