Current through all regulations passed and filed through September 16, 2024
(A) As used in this rule, "exception" refers
to sales for resale that are excluded from the definition of retail sale by
division (E) of section
5739.01 of the Revised Code.
"Exemption" refers to retail sales not subject to the tax pursuant to division
(B) of section 5739.02 of the Revised
Code.
(B)
(1) All sales are presumed to be taxable
until the contrary is established. If a purchaser claims that tax does not
apply to a transaction, the purchaser must provide a fully completed exemption
certificate to the vendor or seller. The exemption certificate may be provided
electronically or in hard copy. The vendor must retain the fully completed
exemption certificate in its files.
(2) Exemption certificate forms are available
on the department's website at tax.ohio.gov. The forms may be reproduced as
needed. Substitute exemption certificates may be developed and used as long as
they contain the data elements prescribed in paragraph (D) of this
rule.
(C)
(1) If a vendor, seller, or consumer is
purchasing a motor vehicle, a watercraft that is required to be titled, or an
outboard motor that is required to be titled and is claiming exemption from the
sales and use tax based on a reason other than resale, the vendor, seller, or
consumer must comply with rule
5703-9-10 or
5703-9-25 of the Administrative
Code.
(2) If a construction
contractor is claiming exemption from sales or use tax on the purchase of
materials for incorporation into real property, the construction contractor
must comply with rule
5703-9-14 of the Administrative
Code.
(D) An exemption
certificate is fully completed if it contains the following data elements:
(1) The purchaser's name and business
address,
(2) A tax identification
(e.g. vendor's license or consumer's use tax account) for the purchaser issued
by this state, if any,
(3) The
purchaser's type of business or organization,
(4) The reason for the claimed exemption,
and
(5) If the certificate is in
hard copy, the signature of the purchaser.
If any of these elements is missing the exemption certificate
is invalid.
(E)
The following form, located on the department's website at
http://tax.ohio.gov/Forms, is
incorporated in this rule by reference: "Certificate of Exemption - Streamlined
Sales and Use Tax Agreement," revised May 2017.
