By Amer Lakhani, JD, Checkpoint News
The Ohio Department of Taxation has updated its taxability matrices and Certificate of Compliance to reflect the Streamlined Sales and Use Tax Agreement (SSUTA), as amended through May 14, 2026. (Ohio Taxability Matrix: Library of Definitions, revised 07/31/2026; Ohio Taxability Matrix: Tax Administration Practices, revised 07/31/2026; Ohio Certificate of Compliance, revised 07/31/2026.)
Per Ohio’s new Taxability Matrix: Tax Administration Practices, marketplace facilitators/providers registered for sales/use tax collection may also be liable for other taxes and fees associated with the transaction and administered by the state tax agency.
The updated Taxability Matrix: Tax Administration Practices also contains a new section providing guidance for delivery network companies (DNCs), i.e., businesses that own or operate an internet website and/or mobile application utilized to facilitate sales and deliveries of food and other tangible personal property offered by local merchants to customers. The guidance states that Ohio treats DNCs the same way as it treats marketplace facilitators/providers for sales/use tax purposes.
However, the updated taxability matrix states that DNCs can request a waiver under Ohio law from the requirement to be treated as a marketplace facilitator/seller for sales/use tax purposes. DNCs registered to collect and remit sales/use tax cannot take a deduction, reduction or tax credit on its sales/use tax return for tax paid by the DNC to the merchant, regardless of whether the DNC has a contract with the merchant from which it obtains products. Instead, DNCs can either request the above-referenced waiver from the requirement to be treated as a marketplace facilitator/seller or provide an exemption certificate to merchants. Lastly, DNCs registered for sales/use tax collection are also liable for other taxes and fees associated with the transaction and administered by the state tax agency.
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