Sales Tax in Ohio

General Inspection Topics
1

I am a new inspector who has been around the business for awhile. I hardly ever see sales tax on invoices to clients. I assume this service is a taxable item. Are inspectors just burying the cost in their invoices or not even claiming the sales to the state?

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In case your internet is broken :wink: here’s what a quick search provided: In Ohio, home inspectors are not required to charge sales tax on their services. Home inspection services are considered professional services, which are generally not subject to Ohio sales tax. Ohio sales tax applies to the sale of tangible personal property and certain enumerated services (e.g., landscaping, repair services, or lodging), but professional services like home inspections are not included in the taxable service categories under Ohio law.
That said, there are a couple of nuances to consider:

  1. Nature of the Service: If a home inspector only provides an inspection and a report (i.e., a professional service), no sales tax applies. However, if the inspector sells tangible goods as part of the transaction (e.g., a physical device or equipment), that portion of the sale could be subject to sales tax.
  2. Business Structure: Home inspectors must still register with the Ohio Department of Taxation for a vendor’s license if they sell taxable goods or services incidentally. But for the inspection service itself, no sales tax collection is typically required.
    To be certain, it’s always a good idea for a home inspector to confirm their specific situation with a tax professional or the Ohio Department of Taxation, especially if their business model includes anything beyond standard inspection services. Ohio REALTORS has historically opposed legislation that would impose sales tax on professional services like home inspections, and as of now, no such tax applies.
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3

What service are you talking about and why would you assume tax information? If you are talking about home inspections and taxing your service fee, I strongly recommend you find a good accountant for your business. This is pretty basic.

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4

Thank you so much for the quick response. Much appreciated!!

Angelo

Fortune Companies, Inc.
AMF Real Estate,LLC
330-338-8949

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