Step-by-step process for filing a sales tax return in Ohio
Let’s get right into the steps to file the sales tax returns.
Step 1: Log in to the Ohio Gateway
To begin, log in to the Ohio Gateway at https://gateway.ohio.gov/ and click the Login button on the right. You’ll be presented with the following page.
If you don't have a username and password, click on "Create an Account" and follow the instructions to sign up.
Step 2: Navigate to the Sales Tax (UST-1) section
Once you're on the dashboard, click on "Sales Tax (UST-1)" to access the sales tax filing section.
Step 3: Acknowledge updates and select the filing period
Read and acknowledge any new updates to proceed. Then, click "Next."
On the following screen, select your filing period. The return type will auto-populate if this is an original return. Click "Next" to continue.
Step 4: Enter or upload taxable sales and tax liability by county
You have two options for entering your sales data:
- Manually enter your taxable sales and tax liability for each county.
- Upload a TXT or CSV file that includes your county sales data. For detailed file format instructions for county data file format specifications.
If manually entering data, use the "Add Counties" button at the top to add counties as needed. Toggle between pages of counties using the provided buttons. Once you've added all the counties, click "Next."
Step 5: Enter gross sales, exempt sales, and sales with tax paid to the Clerk of Courts
On the next screen, enter your gross sales, exempt sales, and sales upon which tax was paid to the Clerk of Courts.
If you have marketplace sales, include those in your gross sales numbers, then enter the marketplace sales in the exempt line. Click "Next" to proceed.
Step 6: Review and accept your UST-1 sales tax return
Review your UST-1 Sales Tax Return for accuracy. If everything looks correct, check the box and click "Accept."
Step 7: Make payment
Local sales tax in Ohio
In Ohio, local jurisdictions may impose additional sales taxes on top of the state sales tax rate. When filing your UST-1 Sales Tax Return, you must report your sales and tax liability for each county separately.
You can look up the full table of sales tax rates in each city and county in Ohio here. Here's a snippet:
Filing Sales Tax in Ohio FAQs
When are sales tax returns due in Ohio?
Sales tax returns in Ohio are generally due by the 23rd day of the month following the reporting period. For example, if you are filing a monthly return for June, your return would be due by July 23rd.
What happens if I file my sales tax return late?
Filing your Ohio sales tax return late may result in penalties and interest charges. The Ohio Department of Taxation imposes a late filing penalty of $50 or 10% of the tax due, whichever is greater, for each month or fraction thereof that the return is late, up to a maximum of $500.
Can I file my sales tax return electronically?
Yes, Ohio offers an electronic filing system called the Ohio Business Gateway (OBG). This secure online portal allows businesses to file and pay their sales tax returns electronically and manage other tax-related tasks. Electronic filing is recommended as it is faster, more convenient, and reduces the risk of errors compared to paper filing.
What if I need to amend a previously filed sales tax return?
If you discover an error on a previously filed sales tax return, you can file an amended return. To do so, log in to your Ohio Business Gateway account, select the period you need to amend, and follow the prompts to make the necessary corrections. Be sure to include an explanation of the changes you are making and any supporting documentation.
How long should I keep records related to my sales tax returns?
It is recommended that you keep all records related to your sales tax returns, including invoices, receipts, and exemption certificates, for at least four years from the due date of the return or the date the return was filed, whichever is later. These records may be necessary in the event of an audit or if you need to file an amended return.
Is SaaS taxable in Ohio?
Yes, SaaS is taxable in Ohio since it is defined as tangible personal property there.
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