Ohio resale certificate | Tax exemption

Homepage
Ohio resale certificate | Tax exemption

Understanding Ohio Sales Tax Exemption Certificates

When it comes to sales tax exemption certificates, Ohio has distinct regulations compared to other states. Notably, Ohio does not mandate the use of its own business tax forms when claiming an exemption. Instead, several types of exemption certificates are recognized, depending on the nature of the purchase.

Types of Ohio Sales Tax Exemption Certificates

Ohio Resale Certificate Requirements

An Ohio resale certificate is used by businesses to purchase items tax-free when those items are intended for resale. For the resale certificate to be valid in Ohio, the consumer must sign it. Vendors can present an Ohio resale certificate either in paper or electronic form, but consumers must ensure that all relevant information is provided. This is crucial for the exemption certificate to be accepted by the vendor.

Unit Exemption Certificate

A unit exemption certificate is utilized to claim exemption on a single purchase. This certificate is particularly useful for one-time transactions where an exemption or exception is applicable.

Blanket Certificate for Continuing Exemptions

A blanket certificate allows for ongoing claims of exemption on purchases from the same vendor or seller. This certificate must be presented to the Clerk of Courts when applying for a title to motor vehicles, off-highway motorcycles, or all-purpose vehicles. It’s important to note that the Certificate of Resale is also necessary when applying for a title to ensure that the purchase remains tax-exempt.

Interstate Commerce and Construction Contract Exemptions

For dealers making interstate commerce sales, presenting the appropriate certificate is essential for the transaction to be tax-exempt. In cases involving construction contracts, a special Construction Contract Exemption Certificate must be signed by the contractor, subcontractor, and the exempt contractee. This certificate safeguards the contractor from liability if the exemption is later challenged. However, the contractor’s certificate must still be presented to ensure that the exemption remains valid.

Multiple Points of Use Exemption Certificate

The Multiple Points of Use Exemption Certificate is a specific form used in Ohio for sales that involve goods or services used in multiple locations. This certificate is signed by the vendor or seller, not the contractor, and it does not provide protection to the contractor in case of an audit.

Using Ohio Sales Tax Exemption Certificates

Resale Certificates for Businesses and Consumers

Resale certificates in Ohio can be used by businesses and consumers purchasing services or software. These certificates are accessible via the Ohio Department of Taxation website under the “Tax Forms” section. Ohio also accepts the Uniform Sales and Use Tax Certificate for claiming exemptions, especially in cases where the purchased item is incorporated into a product for resale, such as raw materials. It is critical that the certificate includes a detailed description of the items being purchased, along with the quantity, unit price, and total purchase price.

Registering for an Ohio Sales Tax Permit

To legally collect Ohio sales tax, businesses must register for a sales tax permit. The registration process requires the following information:

Business Identification Information
Business Entity Details
Business Locations
Date for Commencing Ohio Sales Tax Collection
NAICS Code for identifying the business industry

Businesses can register online through the Ohio Department of Taxation’s website: Ohio Sales Tax Registration.

Ohio Sales Tax Rate

The Ohio sales tax rate is currently set at 5.750%. This rate applies to most retail sales, leases, and rentals of tangible personal property, as well as certain services.

By understanding the types of sales tax exemption certificates and the specific requirements in Ohio, businesses can ensure compliance and take advantage of applicable tax exemptions.

How to Get a Resale Certificate in Ohio?

To obtain a resale certificate in Ohio, businesses must first register for an Ohio sales tax permit through the Ohio Department of Taxation’s website. Once registered, the business can issue a resale certificate to suppliers, allowing them to purchase goods tax-free that are intended for resale. The certificate must include the business’s information, a description of the purchased items, and the business’s sales tax permit number to be valid.

Is a Vendor’s License the Same as a Resale Certificate in Ohio?

No, a vendor’s license is not the same as a resale certificate in Ohio. A vendor’s license permits a business to legally sell products and collect sales tax in Ohio. In contrast, a resale certificate allows a business to purchase goods tax-free that they intend to resell. Both documents are important, but they serve different purposes within Ohio’s sales tax regulations.

How Much Is a Resale Permit in Ohio?

The cost of obtaining a resale permit in Ohio, which is part of the process of registering for a sales tax permit, varies by county but generally ranges between $25 and $50. This fee is paid when applying for the permit through the Ohio Department of Taxation. The resale permit allows businesses to buy goods tax-free for resale purposes.

Do I Need a License to Sell Wholesale in Ohio?

Yes, to sell wholesale in Ohio, you need to obtain a vendor’s license. This license is required to conduct business and collect sales tax in the state. Additionally, if you are purchasing items for resale, you will also need a resale certificate to buy goods tax-free. Both documents are essential for legally operating a wholesale business in Ohio.

Ohio Wholesale Opportunities

Are you looking to Grow Your Furniture Business in Ohio ?

We are a furniture business that encourages small and large businesses alike to buy our products as a reseller for your own website or other multi-channel partners, such as Shopify and eBay.

Furthermore, none of our products are sold directly to the consumer; we do not offer retail services.

Join Artisan

Furniture Suppliers Ohio OH

Ohio is a state in the Midwestern region of the United States. Of the fifty U.S. states, it is the 34th-largest by area, and with a population of nearly 11.8 million, is the seventh-most populous and tenth-most densely populated. The state’s capital and largest city is Columbus, with the Columbus metro area, Greater Cincinnati, and Greater Cleveland being the largest metropolitan areas. Ohio is bordered by Lake Erie to the north, Pennsylvania to the east, West Virginia to the southeast, Kentucky to the southwest, Indiana to the west, and Michigan to the northwest. Ohio is historically known as the “Buckeye State” after its Ohio buckeye trees, and Ohioans are also known as “Buckeyes”. Its state flag is the only non-rectangular flag of all the U.S. states.

The state takes its name from the Ohio River, whose name in turn originated from the Seneca word ohiːyo‘, meaning “good river”, “great river”, or “large creek”. Ohio arose from the lands west of Appalachia that were contested from colonial times through the Northwest Indian Wars of the late 18th century. It was partitioned from the resulting Northwest Territory, which was the first frontier of the new United States, and became the 17th state admitted to the Union on March 1, 1803, and the first under the Northwest Ordinance. Ohio was the first post-colonial free state admitted to the union, and became one of the earliest and most influential industrial powerhouses during the 20th century. Although Ohio has transitioned to a more information- and service-based economy in the 21st century, it remains an industrial state, ranking seventh in GDP as of 2019, with the third largest manufacturing sector and second largest automobile production.

Source