Any business that sells goods or taxable services within the state of Oklahoma to customers located in Oklahoma is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in Oklahoma must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Do you need to get a Sales Tax certificate in Oklahoma?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct business
- You sell or ship products to a buyer in Oklahoma
- You have a distribution location such as a storage area or warehouse space with goods
- You have employees physically present in Oklahoma (including independent contractors, sales persons, representatives, or agents)
- Your business delivers merchandise in company owned vehicles
- Your business has taxable services in the state of Oklahoma
What constitutes taxable services in Oklahoma State?
The majority of service businesses are not taxable in Oklahoma. The exceptions would be if your business fabricates or manufactures a good or product.
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Oklahoma?
As a wholesale company conducting business in the state of Oklahoma, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you need to collect sales tax on shipping and handling of merchandise?
If you sell tangible goods in Oklahoma that are taxable than you would charge sales tax on shipping and handling charges
Is there sales tax on drop shipments in the state of Oklahoma?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Oklahoma are required to have sales tax added
Are there any exemptions to taxable items sold?
Certain raw materials, machinery, newspapers and magazines, medical services, downloadable software, and prescription medicines are tax exempt.
Register for an Oklahoma sales/use tax number
Oklahoma state, county, city, & municipal tax rate table