Guides an Ohio vendor through a complete sales and use tax compliance engagement: nexus and vendor-license check, taxability classification, UST-1 return preparation via the Ohio Business Gateway, and remittance with the 0.75% vendor discount. Covers both intrastate (origin-based) and remote-seller (destination-based/SST) scenarios under ORC Chapters 5739 and 5741.
Determine whether the business has Ohio sales tax nexus (physical or economic) and confirm the vendor license is active and current. Economic nexus triggers at $100,000 gross receipts or 200 transactions in Ohio in the current or preceding calendar year (ORC 5741.01(I)(2), effective Aug 1 2019). A vendor license costs $25 per location per year and must be renewed by February 28. Marketplace sellers should confirm whether their facilitator (Amazon, Etsy, etc.) is already collecting on their behalf under ORC 5739.01(Q).
Classify each product or service line as taxable or exempt under ORC Chapter 5739. Tangible personal property and enumerated services (SaaS/automatic data processing, staffing, landscaping, physical fitness, specified digital products) are taxable. Most non-enumerated services and grocery food are exempt. Collect and validate exemption certificates (STEC-B for blanket, STEC-U for unit purchases, or SST Certificate) from exempt buyers. Flag any complex bundled transactions for escalation. Note that Ohio is origin-based for intrastate sales and destination-based for remote/SST sales.
Compute Ohio sales tax liability for the period using the correct combined rate (5.75% state + applicable county rate, ranging from 0.75% to 2.25% — e.g., 7.50% Franklin/Columbus, 8.00% Cuyahoga/Cleveland, 7.55% Hamilton/Cincinnati). Apply origin-based sourcing for intrastate Ohio sales (seller's county rate) and destination-based sourcing for remote sales. Separately compute any use tax owed on Ohio-use purchases on which no Ohio tax was collected. Apply the 0.75% vendor discount on timely-filed returns (no cap, ORC 5739.12(B)).
Prepare and file the UST-1 (Universal Sales Tax Return) through the Ohio Business Gateway at tax.ohio.gov. Monthly filers (liability > $600/month) are due by the 23rd of the following month; semi-annual filers (liability $600 or less/month) are due July 23 and January 23. Enter gross sales, deductions, taxable sales, state tax, county tax, use tax, and the vendor discount. Remit net tax due. Retain filed return and payment confirmation as records.
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