Instructions For Form Ust 1 - Universal Sales Tax Return

Important New Information

The Ohio State, County and Transit Sales Tax Return (long

change. All other vendors must convert to destination sourc-

form), UST 1, has been changed for 2007. These changes

ing no later than Jan. 1, 2008. To determine the amount of

will allow the form to be optically scanned, thus reducing

delivery sales for this threshold, delivery sales are defined as

processing time and expenses. The form is now two pages,

taxable sales delivered outside the vendor’s tax jurisdiction in

front and back. Both pages must be submitted. Be sure to

which a vendor does not have a fixed place of business.

complete pages two through four, reporting the sales and tax

Any vendor may change to destination sourcing before the

according to the county where the sale needs to be sourced.

date on which they are required to do so. Once a vendor has

The discount on line 7 for timely filed and paid returns is

changed, it cannot go back to the previous sourcing method.

scheduled to reduce to .75% of 1% (from .9%) effective July

Ohio vendors are eligible for partial compensation for their

1, 2007. The first return affected by this change would be the

costs associated with converting to destination sourcing (use

June 2007 return that is due July 23, 2007. More information

form ST AR-DBS). Visit our Web site at tax.ohio.gov for

about this can be found on our Web site closer to that date.

further information.

Ohio is in a transition stage for switching some sales from an

This and other changes in Ohio sales tax law is a result of

origin to destination basis. Most vendors charge and collect

Ohio being an associate member state in the Streamlined

the tax based on the rate in effect at the vendor’s place of

Sales and Use Tax Agreement. This nationwide group of pro-

business. This rule will always apply as long as the customer

fessionals, including both government and industry leaders,

takes possession of the item sold at the vendor’s place of

has implemented uniform procedures for sales and use tax

business.

for all member states. Many of the past and future changes

Starting Jan. 1, 2005, Ohio vendors had the option to change

to definitions relating to sales and use tax are a result of the

to destination sourcing. That is, collecting tax at the rate in

streamlined project. For more information about sourcing of

effect where the customer takes possession of the item sold.

sales and other details of the Streamlined Sales and Use Tax

Starting May 1, 2006, those vendors with delivery sales in

Agreement, please go to our Web site at tax.ohio.gov and

calendar year 2005 greater than $30 million began collecting

click on the Streamlined Sales Tax Project link, or call toll-

tax by destination. On May 1, 2007, those vendors with deliv-

free 1-800-304-3211.

ery sales in calendar year 2006 greater than $5 million will

The Finder

The Finder.

Need help in determining sales tax rates? Go to our Web site at tax.ohio.gov and select

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Instructions For Form Ust 1 - Universal Sales Tax Return - 2007

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