US Ohio imposes sales tax on remote sellers

Ohio has become the latest US state to impose sales tax obligations on out-of-state retailers. This includes sellers from outside of the US. Ohio will also require facilitating marketplaces to collect sales tax on behalf of third-party sellers.

The new obligations come into force on 1 August 2019.

The new requirements follows the 2018 South Dakota v. Wayfair Supreme Court ruling which created a new economic nexus test. This changed the right to oblige non-resident sellers to collect sales tax from merely having a physical presence to one including selling to consumers.

Ohio is to impose a registration threshold of $100,000 or 200 transactions per year on the obligation to register and collect taxes.