After years of negotiations, Amazon began to collect sales tax from Ohio consumers as of June 1st. The move comes after the announcement that Amazon will expand in Ohio bringing roughly 1,000 jobs to the state. If your organization accrues Amazon purchases to Ohio use tax, you should start watching the invoices. There’s no need to accrue use tax when sales tax is charged.
Note that the move seems to be great news for Ohio retailers and a mixed blessing for Ohio consumers. Previously Ohio consumers were expected to self-report their online purchases on their tax returns. This move takes that burden off tax payers for Amazon purchases, but will now increase their cost of purchases at the online retailer.
