Sales Tax Obligations of Purchasers in Ohio

April 13, 2006

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Ohio imposes various requirements on purchasers doing business in Ohio. We recommend that you go through the items below to help you with the most frequently asked questions concerning purchasers and sales and use tax issues.

Tax exemption certificates. An exemption certificate may be issued by a purchaser of a nontaxable item. The exemption certificate may be based on the type of transaction (such as a resale exemption) or on the item itself.

Resale exemptions. The definition of a taxable retail sale does not include sales for the purpose of resale and therefore is not subject to sales tax. If you are a purchaser of property or services under the resale exemption you are required to execute an exemption certificate.

Resale exemption certificate. Ohio prescribes forms that are for use as unit and blanket exemption certificates and may be duplicated as needed. Substitute exemption certificates must contain the following information:

identify the vendor
reasonably apprise the tax commissioner of the exemption being claimed
be signed and dated by you, the purchaser

Blanket resale certificates. When you are a certificate holder that regularly engages in making tax-exempt purchases you may furnish a certificate to the seller specifying that all tangible personal property subsequently purchased will be for the purpose shown on the certificate. This blanket certificate will relieve the burden of executing a separate certificate for each individual tax-exempt purchase. The blanket resale certificate should include the information that is included on the resale exemption certificate discussed above.

Purchases from out-of-state vendors. In Ohio, you are generally allowed a credit for sales or use tax paid in another state for tangible personal property used in Ohio. The amount of the credit may not exceed the amount of the Ohio tax.