Physical Location in Ohio - Every Ohio retailer (vendor) and certain service providers making taxable retail sales must obtain a vendor’s license, collect the proper amount of sales tax, file tax returns with payment of tax collected, and maintain complete records.
Out-of-State Sellers - An out-of-state seller that meets Ohio’s substantial nexus laws will be required to obtain a seller’s use tax license, collect tax on taxable sales made to consumers in this state, file tax returns with payment of tax collected, and maintain complete records.
• Please note – Out-of-state sellers are not required to collect and remit tax on taxable sales made through a marketplace, so long as the marketplace facilitator is collecting and remitting tax on your behalf. For additional information on marketplace facilitators, please click here.
- Regular vendor's license (ST-1) – Issued by the County Auditor to vendors with a fixed place of business in Ohio. Vendors of tangible personal property and certain services must have one regular vendor's license for each fixed sales location.
Application Fee $25
- Transient vendor's license (ST-1T) – Issued by the Department of Taxation to vendors who transport stocks of goods to temporary places of business or exhibits in a county where they have no fixed place of business in order to make sales or lease motor vehicles.
Application Fee $25
Certificate of Registration for Out-of-State Sellers (UT 1000) - Issued by the Department of Taxation to out-of-state sellers who are required to, or voluntarily, collect and remit use tax on sales made to Ohio consumers.
You must have an active regular vendor’s license for each fixed place of business from which taxable retail sales are made.
A regular vendor’s license, which is issued by the County Auditor to cover a fixed place of business, may be transferred from one existing business location to another when you move an existing business to a new location within the same county. If the business location is being moved to a different county, a new regular vendor’s license must be obtained from the County Auditor of the different county. A vendor, who is moving an existing business to a new location within the same county and wishes to transfer the existing regular vendor’s license, must submit a transfer application to the Department of Taxation requesting transfer of the license to the new location. See form BA UF or contact your local County Auditor’ Office or call 1-800-282-1782 or visit this site at Tax Forms. If approved, the Department of Taxation will update its file, issue a transfer license, and advise the County Auditor. There is NO FEE for transferring a regular vendor’s license from one location to another within the same county.
If you hold a permit issued by the Division of Liquor Control, the vendor’s license and permit must have the identical name and be for the identical address as shown on the permit. If you move to a new location within the same county, you must contact the Division of Liquor Control to have the permit transferred to the new location address. The Department of Taxation will not issue a Transfer License until we have been notified by the Division of Liquor Control that the permit has been transferred.
Any change in ownership (sole proprietor to partnership, partnership to corporation, corporation to sole proprietor, partnership to sole proprietor, etc.) requires a new license.
A change in your mailing address does not require a new license.
If you are required to obtain a new vendor’s license due to a change in ownership or location, a final return must be filed within 15 days of the last day of business under the original vendor’s license.
If you have any questions regarding the transfer of an existing license or the requirement to obtain a new vendor’s license, please call Tax Registration at 1-888-405-4089.
SUSPENSION: Your vendor’s license may be suspended if you fail to file sales tax returns when due or you fail to pay the tax due thereon. If your vendor’s license is suspended, no retail sales may be made until the license is reinstated. To have a suspended license reinstated, you would be required to file complete and correct returns for all periods and pay the full amount of tax, penalties, and other charges due on those returns. You may also be required to furnish security in an amount equal to your average tax liability for one year.
REVOCATION: Your vendor’s license may be revoked if the Tax Commissioner ascertains that you have no need for the license because you are not engaged in making taxable retail sales.
Vendors must charge and collect the sales tax at the rate in effect in the county where the sale is made or obtain valid documentation detailing why the sale is exempt from tax. Tax on titled motor vehicles, off-highway motorcycles, all-purpose vehicles, personal watercraft, titled watercraft and titled outboard motors is paid to the county Clerk of Courts at the rate in effect in the purchaser's county of residence. Telecommunication services are taxed at the rate in effect in the county of the billable telephone number. Most other areas listed under services are taxed at the county rate where the service is received.
The tax applies when the sale is made, not at some future date when payment is received. For example, if a vendor makes a sale on credit in January, but the money is not received until February, the tax must be reported and paid with January's return.
Vendors must charge the tax on every sale unless the customer provides a properly completed exemption certificate or the sale is exempt by law. Tax must be paid to the state on every taxable sale, even if the price is not collected from the customer. Vendors who fail to send in collected taxes, make sales without a license, or make sales with a suspended or revoked license, are subject to assessments, fines, and criminal penalties.
Vendors are required to keep complete records of daily sales, tax charged and exemption certificates. All records of daily sales and tax charged must be retained for four years and must be open for inspection by agents of the Tax Commissioner. Blanket exemption certificates must be maintained for at least four years after the final sale is made to the purchaser who issued the certificate. The Tax Commissioner may allow the records to be destroyed early or may request that they be kept longer.
Restaurateurs and other food service operators, licensed under section 3732.03 of the Ohio Revised Code, are allowed to maintain records for only 14 days per calendar quarter. The specific dates for which records must be kept are determined by the Tax Commissioner four times a year.
Vendors will receive a letter from the Department of Taxation concerning their filing schedule (monthly, semiannually, or EFT) shortly after obtaining a vendor's license. Returns must be filed when due even if no sales are made and/or no tax is due. Filing schedules are set according to the vendor's anticipated tax liability or their business activity. The tax return must be filed and received by the Department of Taxation on or before the due date indicated on the return. Monthly returns are due on the 23rd of the month, following the reporting period of the prior month; semi-annual returns are due on Jan. 23 and July 23 for the previous six-month filing periods.
Sales tax returns are required to be filed electronically. For more information and a comparison of filing options, see Sales Tax Electronic Filing.
Yes, taxpayers can register, file and pay their sales and use tax via the Ohio Business Gateway by visiting gateway.ohio.gov.
If you feel sufficient time has passed and your check has not cleared your bank, we would recommend that you contact your bank and request a stop payment be issued. You should then send a replacement check for the tax liability amount (discount not allowed) along with a copy of your tax return or a return facsimile. A note should be attached indicating that you have submitted a replacement check for the original lost check.
Note: If you originally filed a facsimile or altered return with your payment, this may cause a delay in processing. Please allow a little more time before you issue a stop payment order and a replacement check.
Some vendors may be required to remit sales tax by EFT. These vendors will be notified of this requirement prior to the first required payment.
Vendors who wish to voluntarily remit by EFT must contact the Treasurer of State, EFT Unit, for remittance procedures at 1-877-338-6446 (toll free).
Sales tax returns and all supporting schedules must continue to be filed in accordance with established EFT procedures.
Cumulative return authority is available for reporting two or more regular county vendor licenses. You may request this authority through the Department of Taxation's Central Registration Unit (1-888-405-4039) or by filing an application, form ST 26, which is available on our Web site at Tax Forms. If granted, you will file one sales tax return each month, reporting your total Ohio sales and tax activity for all Ohio locations in the upper portion of the tax return and provide a county-by-county breakdown of your taxable sales and tax liability in the supporting schedule portion of the tax return. The Tax Commissioner may require this method of filing if it is determined that it is necessary for the efficient administration of the tax.
- An additional charge up to $50 or 10 percent of the tax required to be paid, whichever is greater, may be levied on every tax return not filed on time and/or when the tax liability is not paid in full.
- A penalty up to 50 percent of the tax due may be assessed when a person fails to timely remit collected taxes.
- A $50 fee is charged for every returned check. Interest may be due on any taxes found due and not paid in a timely manner.
A vendor may recover sales tax paid to the state on a sale that becomes a bad debt. The debt must be uncollected for at least six months and written off for federal income tax purposes. The amount of the bad debt and tax previously paid should be deducted from the vendor's sales tax return for the filing period during which the bad debt is written off.
If a customer returns merchandise and the vendor refunds the entire purchase price, including sales tax before the return is filed, the vendor should not report the sale on their tax return. If the tax has already been reported and paid, the vendor may file a refund claim or adjust the current tax return.
Note: In no case should you make an adjustment to your return that causes your taxable sales and tax liability to fall below zero. If an adjustment for a period exceeds your taxable sales and tax liability for a reporting period, you must apply for a refund on form ST-AR, which is available on our Web site at Tax Forms.
Sales tax must be charged on all retail sales unless the purchaser provides a properly completed exemption certificate stating the statutory reason for claiming exemption. The vendor must retain the certificate as proof of nontaxable sales. Exemption certificates are prescribed by the Tax Commissioner and can be obtained from a local printer or office supply store. Sample forms are available on our Web site by searching Tax Forms.
Exemption certificates are not needed when the item sold is never taxable, such as prescription drugs and food sold for off-premises consumption. Certificates are not needed when the purchaser is clearly identified on the invoice as an entity that is always exempt, such as the federal government, the State of Ohio, or any local government of this state.
If you intend to transfer your liquor permit, Ohio law requires the Department of Taxation to review the proposed transferee permit holder’s tax accounts for delinquencies or discrepancies. For the specific taxes reviewed, please see R.C. 4303.26(B). After any discrepancies or delinquencies are resolved, the Department will recommend to the Division of Liquor Control to proceed with the transfer.
Liquor permits must be renewed annually. Ohio law requires the Department of Taxation to review the tax accounts associated with all liquor permits eligible for renewal. For the specific taxes reviewed, please see R.C. 4303.271(D). Upon resolution of any delinquencies or discrepancies, the Department will recommend to the Division of Liquor Control that the permit be renewed.
Under Ohio law, you can be held liable for any outstanding sales tax liability of any business you acquire. This is known as successor liability. Ohio law requires that, during the acquisition process, you establish an escrow account. The escrow account should hold a sufficient amount of the purchase price to cover any outstanding debt. You should request that the seller provide a tax release certificate from the Department of Taxation before the escrow funds are released.
A tax release will be issued by the Department of Taxation after:
- The business has been sold and the seller has filed the final sales tax return (final return should be sent directly to the Central Office, Tax Release Group, with guaranteed funds)
- The department has reviewed the seller's account and found that:
(a) All sales tax returns have been filed,
(b) all reported tax, interest and penalties have been paid,
(c) all filing and reporting requirements have been met.
There are several tax rules that cover particular tax issues. To obtain a copy of any rule, you may consult the Ohio Administrative Code at your local library, or visit this site for a link to Tax Rules.
- Motor vehicle sales – You must obtain proper permits from the Bureau of Motor Vehicles to sell new and/or used motor vehicles and to lease motor vehicles. Call 1-614-752-7637.
- Watercraft/outboard motor sales – Before you can allow a trade-in allowance to reduce the tax base on the sale of a watercraft or outboard motor, you must be licensed as a watercraft dealer through the Ohio Department of Natural Resources, Watercraft Division. Call 1-800-448-2030.
- Liquor sales – You must obtain the proper type of liquor permit from the Department of Commerce, Division of Liquor Control before you make sales of alcoholic beverages.
- Food sales – You must obtain a food service operation license from the Department of Health before you can sell prepared food in a restaurant or similar facility.
- Cigarette sales – You must obtain a cigarette license from the county auditor in the county in which cigarette sales are to be made.
More information may be obtained through the One Stop Business Permit Center by calling 1-800-248-4040 in Ohio, or 1-800-848-1300 outside Ohio.