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. 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.

The Department of Taxation is encouraging out-of-state sellers to register and begin collecting Ohio use tax. Ohio has entered into cooperative agreements with the tax departments of a number of states. Under these agreements, the tax departments assist each other in locating and contacting vendors who make interstate sales.