Ohio sales tax filing update September 2019

What's changing in Ohio?

Ohio has passed a law requiring marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective September 1, 2019.

  • Amazon, eBay, Etsy and Walmart began this collection on September 1, 2019.
  • You can view the state's guidance document here.

How does this affect me?

If you sell through a marketplace that has agreed to begin collection in this state, you'll see sales tax collected in Ohio for sales on and after September 1, 2019] on your TaxJar Dashboard and on your Ohio Transactions page.

  • If you have never set up a filing frequency for Ohio in your account's State Settings, our system will default the state to a monthly frequency and due date on your Dashboard after we see tax collected there. (We default to a monthly frequency and due date if you haven't yet adjusted any frequencies on your end, but the state itself would ultimately determine your exact filing frequency.) 
  • If you are currently opted in to receive email reminders for your sales tax due dates, you'll also see Ohio listed as a state where you have an upcoming monthly return due in those emails.

I've never registered for an Ohio license. Do I need to register for a sales tax license in Ohio now?

If all sales are exclusively made through a marketplace facilitator, and that marketplace facilitator is remitting tax collected from Ohio consumers, there is no need for you to have an Ohio account to collect sales tax, regardless of where the inventory is stored.
  • An out-of-state seller that owns tangible personal or real property that is physically located in this state creates nexus.
  • Please note,  if all sales are exclusively made through a marketplace facilitator, and that marketplace facilitator is remitting tax collected from Ohio consumers, there is no need for you to have an Ohio account to collect sales tax, regardless of where the inventory is stored

I have already registered for a license in Ohio but and all of my sales are marketplace-only sales. Should I cancel my existing registration?

Sellers that do not have a physical presence in the state can close their sales tax account once all prior periods sales tax returns are filed.  

Do I need to collect taxes on my Ohio sales on other platforms?

Yes. If you have nexus in the state (physical or economic) and you make sales to customers in Ohio on platforms outside of the marketplace that is automatically collecting and remitting, you will also need to collect tax on your end on the Ohio orders that are processed on the other platforms.

Do I still need to file returns in Ohio?

If the seller is required to remain registered a return must be filed periodically based on the frequency assigned by state.  
  • Taxpayer should contact the department to adjust frequency.
  • If you've previously registered, the state expects you to remain registered and continue to file returns.

I still need to file returns in Ohio. How do I do this without paying double tax on the sales that were collected and remitted by my marketplace?

When you file, you will include will include all of your sales on Line 1, "Gross sales", of the UST1. 

  • The sales that were made, on which tax was collected, by the facilitator will be included on Line 2, "Exempt sales" (in addition to true exempt sales, if any).

How does this affect my TaxJar report for Ohio?

Your Ohio sales tax report will be updated in October 2019 (when returns for sales after September 1, 2019 are due) to specifically reflect sales that had tax collected and remitted by marketplaces that are supported as marketplace facilitators in TaxJar reports.