Ohio Sales Tax for digital products

Ohio Sales Tax for digital products

Monday, May 14, 2018

During the start up of this site many things were taken into consideration as well as research to ensure that due diligence was followed and all regulations that needed to be implemented were acted upon. There are so many things to take into consideration that it can get confusing. So we decided to highlight a few sites that will be useful to you when trying to start a site.

This includes EIN, business bank accounts and setting up vendor licenses or appropriate merchant accounts when handling sales and tax. Although this is not comprehensive this does primarily have a local emphasis for local businesses.

We found a few sites where you can find out more about digital product sales and internet sales locally.

http://smallbusiness.chron.com/collect-sales-tax-digital-products-70893.html

http://smallbusiness.chron.com/obtain-vendors-license-state-ohio-15692.html

https://www.nolo.com/legal-encyclopedia/ohio-internet-sales-tax.html

If you have a physical presence in Ohio you have to collect sales tax of course. This involves determining your “sales tax nexus” and requires checking with the state tax authority to make sure if you have to collect this tax. But did you know that if you’re selling digital products they ask you to collect sales tax as well even if you don’t necessarily have a physical presence? Luckily for us entrepreneurs a lot of vendors using merchant accounts or shopping carts will have software that automatically calculates this during check out.

If you are not in Ohio here is a site that give yous some sales tax nexus information.

https://blog.taxjar.com/sales-tax-nexus-definition/

However if you are in Ohio here are some more links to help you.

https://www.salestaxhandbook.com/ohio/sales-tax-taxability/software-and-digital-products

http://www.preblecountyauditor.org/Home.aspx?PageID=13

https://home.kpmg.com/content/dam/kpmg/us/pdf/2018/01/salt-technology-checklist-q4-2017.pdf

https://www.salestaxhandbook.com/ohio

https://community.ebay.com/t5/Archive-Scrapbooking/Have-some-questions-about-Vendors-License-for-Ohio/td-p/2360843

As you can see getting sales tax figures out and state tax information figures out can be complex.

http://www.butlercountyauditor.org/Departments/Licensing/Vendor

https://www.etsy.com/teams/7722/discussions/discuss/6736343/page/2

https://www.usa.gov/state-business/ohio

https://howtostartanllc.com/taxes/ohio-sales-tax

https://articles.bplans.com/what-ecommerce-startups-need-to-know-about-online-sales-tax/

https://www.janefriedman.com/author-taxes/

https://business.tutsplus.com/articles/how-nathan-barry-made-12000-in-ebook-income-in-24-hours–fsw-39895

https://www.tax.ohio.gov/online_services/business_taxes_sales_filing.aspx

Keyword search: selling ebook business in ohio

https://ecommerce-platforms.com/ecommerce-selling-advice/top-10-best-ways-sell-digital-goods-online

https://woocommerce.com/2012/05/helping-you-sell-digital-goods/

https://stackingthebricks.com/how-to-sell-your-digital-goods/?_r=uf

https://www.avvo.com/legal-answers/if-i-sell-intangible-goods-online-do-i-need-a-busi-3393341.html

This one deals with filing Ohio Sales Tax, also important to be compliant in filing your State Tax if you have one. One thing to note is that in Ohio as soon as you apply for a vendor’s license you will be having to deal with sales tax even if you aren’t making any profit at all you may still be required to report something to the state taxation office!!!

https://blog.taxjar.com/file-an-ohio-sales-tax-return/

Now, this is by no means a comprehensive list. If you are ever in any doubt check with your local state, software provider and shopping cart software and your legal expert to see what solutions are available to make sure you are deducting and allocating proper tax.

Now this article was lengthy but just to recap there’s state tax that you have to pay at the end of the year usually if you make profit. If you want to sell anything in Ohio that’s a product there’s usually a license you have to get to conduct business and that costs $25 called a vendor’s license. This was the price the last time we checked as of the date of this article. Then if your product is in a state that collects additional tax for selling your product in that state then you have to collect sales tax as well and usually your shopping cart program handles all that.

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