Business Licenses and Permits

Regarding Ohio Sales and Use Tax, the Ohio Department of Taxation outlines several taxpayer types.  The various types determine the cost of the license, as well as the form type, and filing return frequency.

Highlights regarding taxpayer types:

• Like several of the other taxpayer types, a Vendor license costs $25.  Vendors must have one license for each fixed place of business.
• A Service Vendor is described as a person or business that provides one or more of a variety of services such as:  lawn care and landscaping services, snow removal services, telecommunications service.
• A Transient Vendor license is issued by the Department of Taxation and is valid throughout the state.
• A Delivery Vendor is one of only 5 taxpayer types that may file returns semi-annually.
• A Seller is described as a retailer located outside of the state who makes retail sales of property or services for storage, use, or consumption in Ohio.  There is no license fee for a Seller, and they submit form UT 1000 to apply for a license.
• A Direct Pay Permit Holder license is also free.  These licensees are among only 2 taxpayer types that may file returns quarterly.
• Consumers Use Tax Account licenses are obtained by purchasers who have not paid the tax to a vendor or seller.

Other facts regarding Ohio Sales and Use Tax Payments:

• Vendors and some other taxpayer types whose annual liability exceeds $75,000 are required to make accelerated and final payments by EFT.
• Semi-annual returns may be approved only for Vendors, Sellers, Service Vendors, Transient Vendors, and Delivery Vendors whose tax liability is less than $1,200 per six-month period.

When filing a Sales & Use Tax license application with the Ohio Department of Taxation, it’s important to identify your taxpayer type.  This will help ensure that you secure the proper license with the Department.

Steve Elias, Team Leader-Business License Research Team, Corporation Service Company