If you’re a seller that buys products at retail for resale, you can often avoid paying sales tax when purchasing those items.
In Ohio, you need to complete and present an Ohio Sales and Use Tax Blanket Exemption Certificate to the merchant from which you are buying the products to be resold.
This short guide will give you what you need to know to buy products for resale in Ohio, and what to do if you’re presented with an Ohio resale exemption certificate.
If you Wish to Use an Ohio Resale Certificate
The process of using a resale certificate for Ohio isn’t difficult. Keep in mind there are two different forms depending on if you’re making a one-time sales tax-exempt purchase or if you plan on making ongoing purchases.
- If you’re making multiple purchases, you want to use form STEC B: Sales and Use Tax Blanket Exemption Certificate
- If it’s a one-time purchase use form STEC U: Sales and Use Tax Unit Exemption Certificate
Most sellers will want the STEC B to avoid having to create additional forms for future purchases. Both forms require the buyer to list their name, address, purpose for the exemption (resale), and vendor’s license number (if any). Make sure to sign and date the form and present it when making your first sales tax-free purchase.
If you are Presented with an Ohio Resale Certificate
If you’re a retailer with nexus in Ohio and you’re presented with a STEC B or STEC U when your customer wishes to purchase items without sales tax for resale, you’ll want to make sure the form has been completed and signed. Then visit the Ohio Department of Revenue and verify the validity of the resale certificate (you can find out how to verify resale certificates in every state here). You’ll want to hang onto each of the resale certificates presented to you in case of future audit.
If you have additional questions, you can contact the Ohio Department of Taxation by mail, email, or phone:
- Call (888) 405-4039 for general Sales and Use Tax Questions
- Email them using this webform
- Or send a letter to: Ohio Department of Taxation, P.O. Box 530, Columbus, Ohio 43216-0530
As you can see, using a resale certificate in Ohio isn’t too painful. I hope this guide has made the process clear, but if you’d like to share your experience or have further questions, please start the conversation in the comments below.