Is Shipping Taxable in Oklahoma?

by Jennifer Dunn January 21, 2021


Last updated July 14, 2017

Sales tax can be a riddle for sellers and grows ever more confusing when every state has their own set of laws about how it is applied. When you get down to the nitty gritty topics like whether to charge sales tax on shipping and handling, it can be enough to make you want to pull your hair out. If you have sales tax nexus in Oklahoma, you need to know whether to charge sales tax on any shipping charges. Today, we find out.

Is Shipping Taxable in Oklahoma?

Oklahoma shipping and handling

Here is what the Oklahoma Tax Commission has to say on the matter:

Oklahoma makes it pretty easy to avoid having to charge sales tax on shipping and handling; a seller must simply state the shipping and handling charge separately on the invoice. If the shipping and handling charge is part of the price of the goods, then the shipping and handling is taxable.

Handling Oklahoma Shipping and Handling Sales Tax with TaxJar

The TaxJar app defaults to the most common Oklahoma scenario – that shipping and handling is non-taxable.However, if your business does charge sales tax on shipping, then TaxJar’s Shipping & Handling Override allows you to update that in your state tax settings. This will make the Oklahoma Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to charge sales tax on Oklahoma shipping.Learn more about how TaxJar treats shipping and handling here.Have questions or comments about taxable shipping in Oklahoma? Leave a comment and start the discussion! And to learn more about TaxJar and get started, visit TaxJar.com/how-it-works.

In Summary:

You will not have to charge sales tax on shipping and handling in Oklahoma.

In order to avoid the customer paying sales tax on shipping and handling in Oklahoma, be sure to list the shipping and handling charges separately on the invoice. Don’t make the charges part of the purchase price of the goods and you are in the clear.

Please note: This blog is for informational purposes only. Be advised that sales tax rules and laws are subject to change at any time. For specific sales tax advice regarding your business, contact a tax advisor.

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