Tax News

CCH (cch.taxgroup.com) reports:

  The Ohio Department of Taxation has issued a sales and use tax information release to explain changes to the way sales of tangible personal property and services are sourced. Beginning January 1, 2010, Ohio vendors that had previously switched to destination sourcing for delivery sales must source their sales to the location where the order was received. Remote sales made by Ohio vendors, via mail order, telephone, or the Internet, must also be sourced to the location where the order was received. Sales by out-of-state vendors must be sourced to the location where the purchaser receives the tangible personal property. Sales of taxable services will be sourced to the location where the consumer receives the service, no matter where the service provider is located.

  Vendors that converted to destination sourcing and received compensation for making the change may qualify for compensation for converting back to origin sourcing. Vendors will not be subject to penalties relating to the sourcing change as long as the changes are completed by April 1, 2010. Beginning January 1, 2010, consumers who remit Ohio sales tax to the seller at the rate applicable where the order was received or where the consumer received the property will not be subject to any additional sales or use tax on the transaction.
 
Sales and Use Tax: Information Release ST 2009-03 , Ohio Department of Taxation, December 2009