Sales Tax Information for Sellers
What’s subject to tax?
Tangible personal property is subject to tax as are some services. In general, all sales that are not specifically exempted are subject to sales tax. The following is a list of sales made by Ohio University that are exempt from sales tax:
- Internal sales to other departments
- Sales of services provided by the University (such as massages)
- Food for consumption off the premises where it is sold
- Food sold to students in the dining halls
Most other sales are subject to sales tax. Always consult with the tax compliance manager prior to making sales to determine your licensing, collecting, and reporting requirements.
Before sales occur
Before you make any sales, contact the tax compliance manager. The tax compliance manager will help you obtain a vendor’s license and any other necessary permits. A vendor’s license is required for each fixed place of business (physical address) and costs $25. In order to obtain a vendor’s license:
- Complete the vendor’s license application
- Complete a Direct Payment (DP) for $25
- Submit the vendor’s license application and the DP to the Tax Compliance Manager prior to making sales.
You may also need other permits depending on the type of sale. Additional information can be found on the Ohio Department of Taxation’s website. If you are making food sales, you must obtain a food service operation license from the Department of Health before you can sell prepared food in a restaurant or similar facility. For other types of sales, more information may be obtained through the One Stop Business Permit Center by calling 1-800-248-4040 in Ohio, or 1-800-848-1300 outside Ohio.
When making sales, you must collect tax at the effective rate for the county of the sale. (If making sales online or via mail order, please contact the Tax Compliance Manager.) If a customer is tax exempt, you need to obtain a copy of the customer’s Blanket Exemption Form and you will need to retain the copy for four years.
Tax may be charged in addition to the price of the item or it may be included in the cost of the item. Please contact the Tax Compliance Manager to determine which method is most appropriate for your sale.
After the sale
When making a deposit, the revenue should be deposited to a revenue natural account. The sales tax collected should be deposited to natural account 022023.
Sales taxes are reported and submitted monthly to the State of Ohio. You will need to complete an Ohio Monthly Tax Report [Excel] by the 10th of each month for sales that occurred in the prior month.
Taxable Cash Transactions
Any time the University receives $10,000 in cash in one transaction or in two or more related transactions, we are required to file Form 8300 "Report of Cash Payments Over $10,000 Received in a Trade or Business". Cash is narrowly defined as U. S. and foreign coin and currency or a cashier's check, money order, bank draft, or traveler's check. Transactions occurring up to a rolling 12 month period are considered related (and reportable) if the recipient knows, or has reason to know, that each transaction is one of a series of connected transactions. Payments for tuition, fees, room and board, etc. are considered to be related (and reportable) transactions.
Note: Cash does not include a check drawn on the payer's own account, such as a personal check, regardless of the amount or a charitable contribution. Trade or business is defined as any activity constituting the sale of goods or the performance of services to produce income under Internal Revenue Code Section 162. One such example of trade or business income for a university would be tuition payments.
Form 8300 is due the 15th day after the date the cash was received. The University must give a written statement to each person named on a required Form 8300 on or before January 31 of the following calendar year in which the cash is received.
For more information, contact the Tax Manager.