New Vendor Sales Tax Basics Diane M. Werner, C.P.M. Ohio Department of Taxation Akron Service Center
The Basic Responsibilities of an Ohio Retailer (Vendor): §Obtain a vendor's license - ORC (A) §Collect sales tax - ORC § Maintain complete records - ORC §File tax returns with payment - ORC
Five Types of Vendor’s Licenses §Regular County……… ORC (A) §Transient ……………. ORC (B) §Service………………. ORC (C) §Delivery……………… ORC (D) §Seller's Use……………ORC
Obtain a Vendor’s License §Online at Ohio Business Gateway l All types including *Seller’s Use Permit/ Consumer’s Use *(license only, no returns) §ODT Service Center l Akron Service Center 161 S. High St, Rm. 501 All types including *Seller’s Use Permit/Consumer’s Use * (license only, no returns) §County Auditor’s Office l County where business is located Only their own county license
Is it Taxable? Sales tax is applied to the retail sale, lease, and rental of tangible personal property (TTP) unless specifically exempted (ORC ). Services listed in ORC chapter B(3).
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Taxpayer Bares the Burden of Proof §The statute of limitations for tax reported for a registered taxpayer is 4 years. §No statute of limitation on tax collected and not remitted.
The way businesses file sales tax returns changed beginning with the first filing period in All vendors – regardless of sales volume – are required to file electronically rather than on paper. Sales Tax Electronic Filing
Sales Tax Electronic Filing Options
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Complete form and click “next”
Review the information and click “register”
Registration Confirmation
Select “My Companies”
Select “Add Companies”
Add company information, click “add”
Select “ Return to My Companies”
Select “Manage”
Choose “Add” sales tax account
Enter your Vendor’s License, click “next”
Select “Add”
Choose “logout”
Taxable Sales & Tax Liability must be entered before line 6.
Sales Tax is a Trust Tax. Failure to remit tax collected is a fourth degree felony.
Be sure to cancel your license when you go out of business.