Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in. A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

Should out-of-state sellers collect Ohio's use tax?

Sellers should collect the use tax on sales they make to Ohio residents. If an out-of-state seller has sufficient contact with the state (nexus), the seller is required to abide by Ohio's tax laws. Sellers who have nexus with Ohio are legally required to register, collect, and remit use tax, in the same way that the Ohio-based vendor collects and remits sales tax. Examples of activities that create nexus are: regularly having employees or other individuals operating in the state; making regular deliveries of tangible personal property into this state; or any other physical presence in Ohio. Effective August 1, 2019, Ohio enacted substantial nexus statutes when a seller has at least 200 transactions or $100,000 or more in gross sales into Ohio. With this change in statutes, a seller making sales into Ohio may have a requirement to collect Ohio (seller's) use tax without a physical presence in this state. See Ohio Revised Code 5741.01(I).

A large number of sellers who may not have nexus with Ohio register voluntarily, because they realize the collection of Ohio tax is a convenience and service to their customers, who otherwise would have to pay the tax directly to the state or risk formal assessment of the tax, penalties, and interest.

 

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