Marketplace facilitators making interstate sales collect Ohio sales tax based upon the consumer’s destination

Sourcing sales is critical to determine the appropriate jurisdiction and tax rate for Ohio sales tax collection purposes. Recently, the Ohio Department of Taxation revised Information Release ST 2009-03 to reflect that sales facilitated by “marketplace facilitators” are sourced to the destination of the sale – i.e., the location where the consumer receives the tangible personal property or service, regardless of where the marketplace facilitator or seller is located. Marketplace facilitators, like Amazon, eBay, Etsy, etc., are entities that operate a marketplace to facilitate sales on behalf of third-party sellers and are obligated to collect tax on facilitated sales delivered to Ohio locations (assuming the marketplace has nexus by virtue of exceeding $100,000 in Ohio sales).


On the other hand, intrastate sales are sourced to the origin of the sale. This means a marketplace facilitator’s direct sales are sourced to the location where the order is received, if the order is received in Ohio. This chart released by the Department summarizes how sales are sourced depending on the type of transaction. Businesses making sales to Ohio customers should review how sales are sourced to ensure they are collecting the proper local sales tax rate.


If you have questions regarding how your sales are sourced for Ohio Sales / Use Tax purposes, or any other Ohio tax issues, please do not hesitate to contact us.


Attorney Steven A. Dimengo is Managing Partner of Buckingham, Doolittle & Burroughs, LLC. He helps clients with complicated tax challenges including Ohio sales/use, income, commercial activity and federal taxes and has represented clients before the Ohio Supreme Court. Steve can be reach at [email protected] or 330.258.6460.


Richard B. Fry III is a partner and Buckingham’s Taxation Practice Group Chair. He focuses on state and local tax compliance and controversies, including Ohio and multistate sales/use tax, commercial activity tax, and personal income tax issues. Rich can be reached at [email protected] or 330.258.6423


Nathan M. Fulmer is an associate in Buckingham’s Taxation Practice Group. He represents clients on a broad range of tax planning and controversy matters. His joint degree in taxation allows him to provide unique solutions when assisting clients on business matters. Nate can be reached at [email protected] or 330.258.6464.


About Buckingham, Doolittle & Burroughs:

Buckingham, Doolittle & Burroughs, LLC is a corporate law firm that counsels middle-market executives and business leaders all over Ohio and beyond. With offices in Canton, Akron, and Cleveland, Buckingham offers clients Business Law Reimagined through sophisticated and practical legal services. Serving the region for more than 100 years, Buckingham’s mission is to deliver meaningful experiences through the practice of law, exceed expectations in terms of service, counsel and business sense, and to offer continuous value to the industries, communities and clients they serve. For more information, news and updates, visit