Ohio provides tax exemptions for a variety of situations, including as charitable organizations, the selling of specific goods, and specific kinds of transactions. What you need to know if you want to become tax exempt in Ohio.
Find out if you qualify for tax exemption first. Although they must request exemption from the Ohio Department of Taxation, nonprofit organizations are typically exempt from sales and use tax in Ohio. Government agencies and other organizations of different kinds are also qualified for tax exemption.
In order to receive a tax exemption certificate from the Ohio Department of Taxation, you must be eligible for one. You can buy things for your company tax-exempt thanks to this certificate. Through the Ohio Business Gateway, an online application for this credential is available.
It’s crucial to keep in mind that not all purchases qualify for tax exemption. Clothing, for instance, is taxable in Ohio unless it qualifies as “exempt clothing.” Aprons, lab coats, and safety clothes are examples of apparel that is exempt. However, unless they are bought for a medical need (with a prescription), shoes in Ohio are typically subject to sales tax.
In Ohio, web hosting is typically regarded as a taxable service, but there are a few exceptions. Sales tax may not apply if the web hosting service is utilized to disseminate information to the general public (such as on a public website). Additionally, the complete package could be excluded from sales tax if the web hosting service is combined with other non-taxable services (like website design).
Last but not least, Ohio law generally mandates that nail salons collect sales tax for their services. However, the service could be free from sales tax if the client obtains a prescription for a medical condition that calls for nail care (like diabetes).
In conclusion, obtaining a tax exemption certificate, establishing eligibility, and comprehending which purchases qualify are all necessary steps to being tax free in Ohio. To guarantee that the law is followed, it’s critical to stay up to date on Ohio’s tax laws and rules.
In Hamilton County, Ohio, the sales tax rate is 7.8% as of 2021.