Ohio Tax Nexus

Businesses with nexus in Ohio are required to register with the Ohio Department of Taxation and to charge, collect, and remit the appropriate tax.

Generally, a business has nexus in Ohio when it has a physical presence there, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives. However, out-of-state sellers can also establish nexus in the ways described below.

Ohio nexus for out-of-state sellers

Affiliate nexus

If your business has ties to businesses in Ohio, including affiliates, it may have nexus. An out-of-state business has nexus in the state if it engages in certain activities, including but not limited to:

  • Having an affiliated person that has substantial nexus with Ohio
  • Using any person, other than a common carrier acting in its capacity as such, to facilitate the seller’s delivery of tangible personal property by allowing the seller’s customers to pick up the property sold by the seller at a place of business
  • Regularly using employees, agents, representatives, solicitors, installers, repairers, salespersons, or other persons in this state to do any of the following:
    • Conduct the business of the seller
    • Engage in a business with the same or a similar industry classification as the seller, selling a similar product or line of products as the seller
    • Use trademarks, service marks, or trade names in this state that are the same, or substantially similar to, those used by the seller

Click-through nexus

Referrals, including online referrals, by an in-state entity may also create nexus for an out-of-state business. Click-through nexus is triggered in Ohio for an out-of-state seller when both the following are true:

  • The out-of-state retailer enters into an agreement with one or more Ohio residents, “where the resident receives a commission or other consideration for directly or indirectly referring potential customers to the seller (including by a link on a website, in-person communication, [or] telemarketing)”
  • The cumulative gross receipts from sales to consumers referred to the seller by all such residents exceed $10,000 in the preceding 12 months

See ST 2001-01, Use Tax Nexus Standards; Sales and Use Tax FAQs; Ohio Revised Code Chapter 5739: Sales Tax; and Chapter 5471: Use Tax.