Tax Rules: Final: 5703-9
5703-9-02 Maintenance of records.
(A) Since all sales of tangible personal property in this
State are presumed to be subject to Sales Tax until the
contrary is established, the burden of proof rests upon each
vendor to show what part, if any, of their gross receipts
from sales resulted from nontaxable sales.
Each vendor must maintain complete and accurate records which
(1) Primary records such as purchase invoices, bills of
lading, sales invoices, guest checks, exemption certificates,
tax payment receipts, and cash register tapes;
(2) Secondary records such as bank deposit receipts and day
books, journals, or any other records in which accumulated
data is recorded.
Any record in which accumulated data is recorded by the
vendor must be supported by complete detail records from
which such data was accumulated.
Sales invoices and cash register tapes for taxable sales must
have separately stated thereon the total price and the tax
amount charged, which amounts are to be accumulated and
recorded in a secondary record. Invoices for lodging must
also clearly show the length of stay, in terms of consecutive
days for each guest.
All records must be preserved for a period of four years
unless the Commissioner consents, in writing, to their
destruction within that period or by order requires that they
be kept for a longer period.
The tax collected by a vendor, as trustee for the State of
Ohio, is a collection for the benefit of the State and no
person other than the State shall derive any benefit from
such collection other than that provided for in Revised Code
(B) If any vendor fails to maintain complete primary sales
records which may be utilized in verifying the accuracy of
the figures reflected in their secondary records and/or
reported on their tax returns, the Commissioner will use one
of the following methods for such verifications:
(1) Determine taxable and nontaxable sales and the tax due on
sales subject to the bracket tax levied in Revised Code
5739.02, as provided for in Revised Code 5739.13.
(2) Determine "net receipts" as the basis for application of
the four percent tax levied in Revised Code 5739.10.
"Net receipts" means the total amount of the prices of all
sales less (a) the sale price of property returned by the
consumers when the full price of tax has been refunded either
in cash or by credit, (b) sales under sixteen cents, (c) and
sales of food for human consumption off the premises where
The above described determinations will be based upon (i)
purchase records, (ii) a sampling of the vendor's business
activity for a representative period, and/or (iii) other
information relating to the sales made by such vendor.
If any vendor fails to maintain complete secondary records
reflecting the total amount of the prices of sales subject to
tax and the tax due thereon which may be utilized in
verifying the tax liability reported on their tax return, the
Commissioner will verify the reported tax liability by use of
a sample of the vendor's business activity for a
representative period. If this verification method reveals an
error in the reported tax liability, the rate of tax as
determined by the Commissioner will be deemed to be the rate
of tax collection by such vendor and will be applied to the
receipts from taxable sales made during the entire period of
time under review.
Effective: 9-1-67 as TX-11-02
Promulgated under: 5703.14
Prior effective dates: 4-27-65