Can I collect sales tax from customers in different states without violating tax laws in Ohio? What are the requirements?

Can I collect sales tax from customers in different states without violating tax laws in Ohio? What are the requirements?

Ohio law allows for the collection of sales tax from customers in different states under certain circumstances. However, it is important to comply with all applicable tax laws to avoid penalties and legal issues.

According to OHRC Section 5741.05, a seller that collects the tax levied by sections 5741.02, 5741.021, 5741.022, or 5741.023 of the Revised Code on transactions, other than sales of titled motor vehicles, titled watercraft, or titled outboard motors, shall determine under section 5739.033 or 5739.034 of the Revised Code the jurisdiction for which to collect the tax. A marketplace facilitator that collects the tax levied by sections 5741.02, 5741.021, 5741.022, or 5741.023 of the Revised Code on sales facilitated by the marketplace facilitator, other than sales of titled motor vehicles, titled watercraft, or titled outboard motors, shall determine the jurisdiction for which to collect the tax as follows:

1. The location known to the marketplace facilitator where the consumer or the donee designated by the consumer receives the tangible personal property or service, including the location indicated by instructions for delivery to the consumer or the consumer’s donee;
2. If division (1) does not apply, the location indicated by an address for the consumer that is available from the marketplace facilitator’s business records that are maintained in the ordinary course of the marketplace facilitator’s business, when use of that address does not constitute bad faith;
3. If divisions (1) and (2) do not apply, the location indicated by an address for the consumer obtained during the consummation of the sale, including the address associated with the consumer’s payment instrument, if no other address is available, when use of that address does not constitute bad faith.
4. If divisions (1), (2), and (3) do not apply, including in the circumstance where the marketplace facilitator is without sufficient information to apply any of those divisions, the address from which tangible personal property was shipped, or from which the service was provided, disregarding any location that merely provided the electronic transfer of the property sold or service provided.

According to OHRC Section 5741.21, no seller shall fail to collect the full and exact tax as required by section 5741.02, 5741.021, 5741.022, or 5741.023 of the Revised Code, or fail to comply with sections 5741.01 to 5741.22 of the Revised Code, and the rules of the tax commissioner or except as expressly authorized by such sections, refund, remit, or rebate to a consumer, directly or indirectly by whatsoever means, any of the tax, or make in any form of advertising, verbal or otherwise, any statements which might imply that he is absorbing the tax, or paying the tax for the consumer by an adjustment of prices, or selling at a price including the tax, or rebating the tax in any other manner.

Therefore, if you are selling tangible personal property or services to customers in different states, you may be required to collect sales tax under certain circumstances. It is important to comply with all applicable tax laws and regulations to avoid penalties and legal issues.

Jurisdiction

Ohio

• General