Ohio: Sales Tax Handbook

Ohio:

Are Software and Digital Products subject to sales tax?

While Ohio's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of software and digital products in Ohio, including canned software - delivered on tangible media, canned software - downloaded, custom software - delivered on tangible media, custom software - downloaded, customization of canned software and digital products. To learn more, see a full list of taxable and tax-exempt items in Ohio.

Canned Software - Delivered on Tangible Media

TAXABLE

Sales of canned software - delivered on tangible media are subject to sales tax in Ohio.

Canned Software - Downloaded

TAXABLE

Sales of canned software - downloaded are subject to sales tax in Ohio.

Custom Software - Delivered on Tangible Media

TAXABLE

In the state of Ohio, the state taxes any purchases of any """"computer services"""" for business use. C\The definition of computer services extends to any custom programming of a system software. IT should be noted that the programming of custom application software is not considered a taxable sale.

Custom Software - Downloaded

EXEMPT

In the state of Ohio, the Ohio taxes any purchases of """"computer services"""" for the intent of business use. It is also applicable if any computer services include any sort of custom programming of system software. It should be noted that the programming of custom application software is not considered to be a taxable sale.

Customization of Canned Software

TAXABLE

In the state of Ohio, any reasonable, separately stated charges for modifications to the canned software is prepared exclusively for any specific customer is considered to be exempt, although only to extent of modification.

Digital Products

TAXABLE

In the state of Ohio, any digital products that can be defined as """"electronic information services"""" or """"electronic publishing"" are considered to be taxable so long as they are intended for business use.

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