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How to get a Ohio Resale Certificate & Lookup in 2024

As an online seller or ecommerce store owner who serves customers in the US, you may have to deal with sales tax in some states. Ohio is one of the states that obliges online sellers to collect sales tax from their customers. In this blog post, we will show you what a Ohio resale certificate is, how to obtain one, how to use it correctly, and how it can benefit you.

What is an Ohio Certificate of Resale or Reseller License?

A Ohio certificate of resale, also known as a reseller license, reseller permit, or tax exemption certificate, is a document that allows you to buy goods from a supplier without paying sales tax, as long as you intend to resell them to your customers. This way, you can avoid paying sales tax twice: once when you buy the goods and again when you sell them.

A Ohio resale certificate is not the same as a Ohio sales tax permit, which is a separate document that allows you to collect and remit sales tax from your customers. You need both a Ohio sales tax permit and a Ohio resale certificate to be compliant with Ohio sales tax laws.

How Does a Ohio Resale Certificate Work

A Ohio resale certificate works by exempting you from paying sales tax on purchases of tangible personal property and selected services that you plan to resell in the regular course of your business. For example, if you buy a book from a wholesaler for $10 and resell it to a customer for $15, you don’t have to pay sales tax on the $10 purchase, but you have to collect and remit sales tax on the $15 sale.

However, a Ohio resale certificate does not exempt you from paying sales tax on purchases of items that you use for your own personal or business purposes, such as office supplies, equipment, or software. You also cannot use a Ohio resale certificate to buy items that are not subject to sales tax in Ohio, such as food, clothing, or prescription drugs.

What is Ohio Resale Certificate Number or Reseller Tax ID

A Ohio resale certificate number, also known as a reseller tax ID, is a unique identifier that is assigned to you by the Ohio Department of Taxation when you apply for a Ohio resale certificate. It is usually the same as your Ohio sales tax permit number, which is also issued by the Ohio Department of Taxation.

You need to provide your Ohio resale certificate number or reseller tax ID to your suppliers when you make purchases for resale. This way, they can verify that you are a legitimate reseller and exempt you from sales tax. You also need to keep a record of your Ohio resale certificate number or reseller tax ID for your own tax purposes.

Is a Ohio Sales Tax Permit the Same as a Ohio Resale Certificate

No, a Ohio sales tax permit and a Ohio resale certificate are not the same. A Ohio sales tax permit is a document that allows you to collect and remit sales tax from your customers, while a Ohio resale certificate is a document that allows you to buy goods from a supplier without paying sales tax, as long as you intend to resell them to your customers.

You need both a Ohio sales tax permit and a Ohio resale certificate to be compliant with Ohio sales tax laws. You can apply for both documents at the same time, or separately, depending on your situation.

Ohio Seller Permit vs Resale Certificate

A Ohio seller permit, also known as a vendor’s license, is another document that you may need to obtain if you sell goods or services in Ohio. A Ohio seller permit is different from a Ohio sales tax permit and a Ohio resale certificate, although they are all related to sales tax compliance.

A Ohio seller permit is a document that allows you to sell goods or services in Ohio, regardless of whether you collect sales tax or not. It is required for any person or business that makes retail sales of tangible personal property or selected services in Ohio, or that has a physical presence in Ohio, such as a store, office, warehouse, or employee.

A Ohio seller permit is not the same as a Ohio sales tax permit, which is a document that allows you to collect and remit sales tax from your customers. You need a Ohio sales tax permit if you have nexus in Ohio, which means that you have a significant connection to the state, such as having a physical location, inventory, employees, affiliates, or sales in Ohio.

A Ohio seller permit is also not the same as a Ohio resale certificate, which is a document that allows you to buy goods from a supplier without paying sales tax, as long as you intend to resell them to your customers. You need a Ohio resale certificate if you make purchases for resale in the regular course of your business.

You may need to obtain all three documents: a Ohio seller permit, a Ohio sales tax permit, and a Ohio resale certificate, depending on your situation. For example, if you have a physical store in Ohio, and you also sell online to customers in Ohio, you need a Ohio seller permit to operate your store, a Ohio sales tax permit to collect and remit sales tax from your customers, and a Ohio resale certificate to buy goods from your suppliers without paying sales tax.

Who Needs a Ohio Resale Certificate

You need a Ohio resale certificate if you are a person or business that makes purchases of tangible personal property or selected services for resale in the regular course of your business. This includes online sellers, ecommerce stores, wholesalers, distributors, manufacturers, and retailers.

You don’t need a Ohio resale certificate if you are a person or business that only makes purchases of items that are not subject to sales tax in Ohio, such as food, clothing, or prescription drugs. You also don’t need a Ohio resale certificate if you are a person or business that only makes purchases of items that you use for your own personal or business purposes, such as office supplies, equipment, or software.

Why Do You Need a Certificate of Resale in Ohio

You need a certificate of resale in Ohio to avoid paying sales tax twice: once when you buy the goods, and again when you sell them. By presenting a valid Ohio resale certificate to your supplier, you can claim exemption from sales tax on your purchases for resale, and only pay sales tax when you sell the goods to your customers.

You also need a certificate of resale in Ohio to comply with Ohio sales tax laws and avoid penalties and interest. If you fail to provide a valid Ohio resale certificate to your supplier, you may have to pay sales tax on your purchases for resale, and you may not be able to claim a refund or credit later. If you provide a false or fraudulent Ohio resale certificate to your supplier, you may face civil or criminal charges.

What Information is on a Ohio Resale Certificate

A Ohio resale certificate contains the following information:

  1. Your name and address
  2. Your Ohio resale certificate number or reseller tax ID
  3. Your Ohio sales tax permit number, if applicable
  4. Your Ohio seller permit number, if applicable
  5. The name and address of your supplier
  6. A description of the goods or services that you are buying for resale
  7. A statement that you are buying the goods or services for resale in the regular course of your business
  8. Your signature and date

How to Get a Resale Certificate in Ohio (Steps)

To get a resale certificate in Ohio, you need to follow these steps:

  1. Register for a Ohio sales tax permit, if you don’t have one already. You can register online through the Ohio Business Gateway, or by filling out and mailing Form ST-1, Application for Vendor’s License to Make Taxable Sales. You will need to provide your personal and business information, such as your name, address, social security number, federal employer identification number, business structure, type of business, and estimated sales tax liability. You will also need to pay a $25 registration fee, and a $25 annual renewal fee thereafter.
  2. Apply for a Ohio resale certificate, if you don’t have one already. You can apply online through the Ohio Business Gateway, or by filling out and mailing Form STEC B, Sales and Use Tax Blanket Exemption Certificate. You will need to provide your Ohio sales tax permit number, your Ohio seller permit number, if applicable, and your Ohio resale certificate number or reseller tax ID, which is usually the same as your Ohio sales tax permit number. You will also need to indicate the type of goods or services that you are buying for resale, and the reason for claiming exemption.
  3. Receive your Ohio resale certificate, and keep it in a safe place. You will receive your Ohio resale certificate by mail or email, depending on how you applied. You should keep a copy of your Ohio resale certificate for your own records, and provide a copy to your suppliers when you make purchases for resale. You should also update your Ohio resale certificate if any of your information changes, such as your name, address, or business structure.

How Long Does it Take to Get a Ohio Reseller’s License?

It usually takes about two to four weeks to get a Ohio reseller’s license, which includes both a Ohio sales tax permit and a Ohio resale certificate. However, the processing time may vary depending on the volume of applications, the method of application, and the accuracy of the information provided. You can check the status of your application online through the Ohio Business Gateway, or by calling the Ohio Department of Taxation at 1-888-405-4039.

How much is a reseller’s permit in Ohio

A reseller’s permit in Ohio is free, as long as you already have a Ohio sales tax permit and a Ohio resale certificate. However, you may have to pay a $25 registration fee and a $25 annual renewal fee for your Ohio sales tax permit, depending on your situation. You may also have to pay a $25 registration fee and a $25 annual renewal fee for your Ohio seller permit, if you need one.

How to Fill Out a Ohio Resale Certificate

To fill out a Ohio resale certificate, you need to follow these steps:

  1. Download or print a copy of Form STEC B, Sales and Use Tax Blanket Exemption Certificate, from the Ohio Department of Taxation website, or obtain one from your supplier.
  2. Enter your name and address in the first section of the form.
  3. Enter your Ohio resale certificate number or reseller tax ID in the second section of the form. This is usually the same as your Ohio sales tax permit number, which is also issued by the Ohio Department of Taxation.
  4. Enter your Ohio sales tax permit number, if applicable, in the third section of the form. This is a document that allows you to collect and remit sales tax from your customers.
  5. Enter your Ohio seller permit number, if applicable, in the fourth section of the form. This is a document that allows you to sell goods or services in Ohio, regardless of whether you collect sales tax or not.
  6. Check the box that corresponds to the type of goods or services that you are buying for resale in the fifth section of the form. For example, if you are buying books for resale, check the box that says “Books, periodicals, and newspapers”.
  7. Check the box that says “Resale” in the sixth section of the form, and write a brief explanation of why you are claiming exemption from sales tax. For example, you can write “I am buying these goods for resale in the regular course of my business”.
  8. Sign and date the form in the seventh section of the form, and provide your title and phone number.
  9. Give the completed form to your supplier, and keep a copy for your own records.

How to Use a Ohio Resale Certificate

To use a Ohio resale certificate, you need to follow these steps:

  1. Make sure that you have a valid Ohio resale certificate, and that it matches the type of goods or services that you are buying for resale. For example, if you have a Ohio resale certificate for books, you cannot use it to buy clothing for resale.
  2. Make sure that you have a valid Ohio sales tax permit, and that you have nexus in Ohio. This means that you have a significant connection to the state, such as having a physical location, inventory, employees, affiliates, or sales in Ohio.
  3. Make sure that you have a valid Ohio seller permit, if you need one. This is a document that allows you to sell goods or services in Ohio, regardless of whether you collect sales tax or not.
  4. Present your Ohio resale certificate to your supplier when you make purchases for resale, and provide your Ohio resale certificate number or reseller tax ID, your Ohio sales tax permit number, and your Ohio seller permit number, if applicable. This way, your supplier can verify that you are a legitimate reseller and exempt you from sales tax.
  5. Keep a record of your purchases for resale, and the Ohio resale certificates that you used. You may need to provide this information to the Ohio Department of Taxation or the Internal Revenue Service (IRS) in case of an audit or a dispute.
  6. Collect and remit sales tax from your customers when you sell the goods or services that you bought for resale, unless they are exempt from sales tax in Ohio. You can use the Ohio sales tax rate calculator to determine the amount of sales tax that you need to collect and remit.

How Long is a Ohio Resale Certificate Good For

A Ohio resale certificate is good for as long as you are in business and making purchases for resale in the regular course of your business. However, you may need to update your Ohio resale certificate if any of your information changes, such as your name, address, or business structure. You may also need to renew your Ohio sales tax permit and your Ohio seller permit, if applicable, every year.

How to Verify a Ohio Resale Certificate

To verify a Ohio resale certificate, you can use the Ohio Department of Taxation’s online verification tool, or call the Ohio Department of Taxation at 1-888-405-4039. You will need to provide the Ohio resale certificate number or reseller tax ID, the Ohio sales tax permit number, and the Ohio seller permit number, if applicable, of the person or business that is claiming exemption from sales tax. You will also need to provide the date of the transaction and the amount of the purchase.

What Does a Ohio Resale Certificate or Form Look Like

A Ohio resale certificate or form looks like this:

!Ohio Resale Certificate or Form

Do Ohio Resale Certificates Expire

No, Ohio resale certificates do not expire, as long as you are in business and making purchases for resale in the regular course of your business. However, you may need to update your Ohio resale certificate if any of your information changes, such as your name, address, or business structure. You may also need to renew your Ohio sales tax permit and your Ohio seller permit, if applicable, every year.

How Often Do I Need to Renew My Ohio Resale Certificate

You do not need to renew your Ohio resale certificate, as long as you are in business and making purchases for resale in the regular course of your business. However, you may need to update your Ohio resale certificate if any of your information changes, such as your name, address, or business structure. You may also need to renew your Ohio sales tax permit and your Ohio seller permit, if applicable, every year.

Does Ohio Accept Out-of-State Resale Certificates

Yes, Ohio accepts out-of-state resale certificates, as long as they are valid and issued by another state that has a sales tax. However, you still need to have a Ohio sales tax permit and a Ohio seller permit, if applicable, to sell goods or services in Ohio. You also need to collect and remit sales tax from your customers in Ohio, unless they are exempt from sales tax in Ohio.

Are Ohio Resale Certificates Good in Other States

No, Ohio resale certificates are not good in other states, unless the other state has a reciprocity agreement with Ohio. A reciprocity agreement is a mutual arrangement between two states that allows them to accept each other’s resale certificates and exempt resellers from sales tax. However, not all states have reciprocity agreements with Ohio, and some states have different rules and requirements for accepting out-of-state resale certificates. Therefore, you should always check with the state where you are buying or selling goods or services before using your Ohio resale certificate.

Do All Sellers Accept Ohio Resale Certificates

No, not all sellers accept Ohio resale certificates, even if they are valid and issued by the Ohio Department of Taxation. Some sellers may have their own policies and procedures for verifying and accepting resale certificates, and some sellers may not be familiar with Ohio sales tax laws and regulations. Therefore, you should always communicate with your supplier before making purchases for resale, and provide them with a copy of your Ohio resale certificate and your Ohio sales tax permit number, if applicable. You should also keep a record of your purchases for resale and the Ohio resale certificates that you used, in case of an audit or a dispute.

Conclusion

A Ohio resale certificate is a document that allows you to buy goods from a supplier without paying sales tax, as long as you intend to resell them to your customers. You need a Ohio resale certificate if you are a person or business that makes purchases of tangible personal property or selected services for resale in the regular course of your business. You also need a Ohio sales tax permit and a Ohio seller permit, if applicable, to be compliant with Ohio sales tax laws.

To get a Ohio resale certificate, you need to register for a Ohio sales tax permit, if you don’t have one already, and apply for a Ohio resale certificate, if you don’t already have one. You can do both online through the Ohio Business Gateway, or by filling out and mailing the relevant forms. You will receive your Ohio resale certificate by mail or email, depending on how you applied.

To use a Ohio resale certificate, you need to present it to your supplier when you make purchases for resale, and provide your Ohio resale certificate number or reseller tax ID, your Ohio sales tax permit number, and your Ohio seller permit number, if applicable. You also need to collect and remit sales tax from your customers when you sell the goods or services that you bought for resale, unless they are exempt from sales tax in Ohio.

A Ohio resale certificate is good for as long as you are in business and making purchases for resale in the regular course of your business. However, you may need to update your Ohio resale certificate if any of your information changes, such as your name, address, or business structure. You may also need to renew your Ohio sales tax permit and your Ohio seller permit, if applicable, every year.

You can verify a Ohio resale certificate online through the Ohio Department of Taxation’s verification tool or by calling the Ohio Department of Taxation at 1-888-405-4039. You can also check what a Ohio resale certificate or form looks like online through the Ohio Department of Taxation’s website or by downloading or printing a copy of Form STE

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