Ohio Administrative Code
Title 5703 - Department of Taxation
Chapter 5703-9 - Sales and Use Tax
Section 5703-9-07 - Application for refund of sales and use taxes
Universal Citation: OH Admin Code 5703-9-07
Current through all regulations passed and filed through September 16, 2024
(A)
(1) An
application for refund of sales or use tax illegally or erroneously paid
will be
made on a form "ST AR Application for Sales/Use Tax Refund" and filed with the
department in accordance with instructions thereon. The application may be
filed by a vendor, seller, or consumer, or by a tax representative designated
on a form prescribed or approved for such purposes, e.g., form "TBOR 1
Declaration of Tax Representative." The application will state the
basis for the refund, i.e., why the payment of tax was illegal or
erroneous.
(2) The department will
deny applications if the first three sections of the form "ST AR" are not fully
answered and a complete listing of every invoice included in the refund
application is not provided. If the refund application includes twenty-five or
more invoices, the listing will be provided in an electronic
spreadsheet.
(3) An application
filed by a vendor or seller will show that the tax was remitted to the state. The
vendor or seller will submit one original fully completed form "ST AR
Application for Sales/Use Tax Refund" and one set of the following supporting
documentation:
(a) Copies of original invoices
or similar documents.
(b) Copies of
credit memos, a statement from the customer, signed by the customer with
specified amounts, agreeing to await reimbursement of the tax until final
determination of the refund claim, or some other proof that the accounts
receivable was adjusted for the tax or account activity.
(c)
A Microsoft
Excel or Microsoft-compatible spreadsheet provided
electronically for all claims containing twenty-five or more invoices.
The spreadsheet needs to list every invoice separately and the total
should equal the amount requested on the refund application.
(d) Copies of fully-completed exemption
certificates or letters of usage.
(e) If the claim is due to an amended return,
proof need be provided of the original and amended figures
for the period(s) claimed on the refund application. The proof may consist of
sales journals, cash register receipts, summary reports or any other document
used to prepare the tax return.
(f)
If the invoices included with the refund request are for capitalized research
and development equipment, proof that the equipment purchased is capitalized
research and development equipment. Proof may consist of asset ledgers,
depreciation schedules, etc.
(g)
Copies of accrual sheets for the periods referenced on the refund application,
if tax was erroneously accrued on purchases.
(4) An application filed by a consumer
will show
that the consumer paid the tax to the vendor or seller or directly to the
state. The consumer will provide one original fully completed form "ST AR
Application for Sales/Use Tax Refund" and one set of the following supporting
documentation:
(a) Copies of original invoices
or similar documents.
(b) Copies of
canceled checks or some other proof that the invoices were paid in full,
including the tax.
(c)
A Microsoft Excel or Microsoft-compatible spreadsheet
provided electronically for all claims containing
twenty-five or more invoices. The spreadsheet needs to list
every invoice separately and the total should equal the amount requested on the
refund application.
(d) The reason
why the payment of the tax was illegal or erroneous. If the consumer is
claiming a use-based exemption, the consumer will supply a
detailed description of how the tangible personal property or service was used.
References to the Revised Code or legal opinions alone are insufficient to
substantiate a refund request.
(5) An application for refund of sales or use
tax needs
to be filed within the period specified by divisions (D) and (E) of
section 5739.07 of the Revised Code. Tax
is paid on the date it is remitted to the state and not on the date it is
collected by a vendor or seller from a consumer.
(B)
(1) A
consumer seeking refund of over-collected sales or use tax
need
either:
(a) File an application for refund
directly with the tax commissioner pursuant to paragraph (A)(4) of this rule;
or
(b) Request a refund from the
vendor or seller that collected the tax in question. A request for refund from
a vendor or a seller is not an application for refund to the
commissioner.
(2) If a
vendor or seller denies a consumer's refund request, the consumer may file an
application for refund with the commissioner pursuant to paragraph (A)(4) of
this rule. Requesting a refund directly from the commissioner is the consumer's
sole remedy to claim refund of the tax. Any such application
needs to
be filed with the commissioner within the time prescribed in paragraph (A)(5)
of this rule.
(C) Any refund amount that is determined to be due a taxpayer based on an application for refund of sales or use tax will first be applied to any outstanding indebtedness of that taxpayer pursuant to section 5739.072 of the Revised Code. Any amount remaining after the satisfaction of such outstanding indebtedness will be paid to the taxpayer.
(D) The following forms, located on the department's website, are incorporated in this rule by reference:
(1) "ST AR Application for
Sales/Use Tax Refund," revised May 2016.
(2) "TBOR 1 Declaration of Tax
Representative," revised December 2013.
Disclaimer: These regulations may not be the most recent version. Ohio may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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