Navigating Oklahoma’s sales tax guidelines
Understanding Oklahoma’s guidelines for economic nexus in the state is crucial for businesses to ensure they remain compliant for sales tax filings and payment remittance. Oklahoma dictates the number of transactions and/or total sales that define whether or not a business or remote seller has economic nexus and, therefore, a tax obligation to the state. Does your business need to file a sales tax return and remit payment in Oklahoma? Use TaxJar’s Oklahoma tax guide to estimate potential sales tax liabilities and ensure your business adheres to the tax compliance requirements in the state.
Do you need to collect sales tax in Oklahoma?
You’ll need to collect sales tax in Oklahoma if you have physical or economic nexus in the state. Businesses with physical nexus have a tangible presence or activity in the state. Businesses with economic nexus are those that meet a state’s’ economic threshold for total revenue or the number of transactions in that state.
Do you have physical nexus in Oklahoma?
Oklahoma considers a seller to have physical nexus if the business has:
- an office or place of business in Oklahoma
- a salesperson, contractor, installer or other representative of the business doing business in the state
- goods in a warehouse, distribution center or other place of business in the state
- delivery of merchandise in Oklahoma in vehicles owned by the taxpayer
The Oklahoma Tax Commission offers additional context about what constitutes sales tax nexus in Oklahoma (sellers can refer to page 8 – “Place of Business”). The state passed the Oklahoma Retail Protection Act of 2016, attempting to declare that some out-of-state sellers with no significant presence in the state also have Oklahoma sales tax nexus.
Do you have economic nexus in Oklahoma?
Effective November 1, 2019, Oklahoma considers vendors who sell at least $100,000 in the previous 12 months in the state to have economic nexus. All businesses, online sellers, and vendors that meet this sales threshold must collect sales tax from buyers in the state. Oklahoma offers more detailed insights and economic nexus guidance for sellers.
Is what you’re selling taxable?
Oklahoma assesses sales tax on multiple services. We recommend checking with the state tax authority to confirm if the service you offer is considered taxable.
Tangible products are taxable in Oklahoma, though a few products have an exemption, such as certain prescription medications. There is also an exemption for medical equipment and supplies.
Is SaaS taxable in Oklahoma?
SaaS is non-taxable in Oklahoma.
How to get a sales tax permit in Oklahoma
You can register for your Oklahoma sales tax permit online at the Taxpayer Access Point (TAP). Or visit TaxJar’s registration page to request that TaxJar manage your Oklahoma registration for you. Businesses can also register in person at the Oklahoma City or Tulsa offices of the Oklahoma Tax Commission.
All businesses must provide the following information to register for a sales tax permit in Oklahoma:
- Personal identification information (Name, address, SSN, etc.)
- Business identification information (Name, address, EIN, etc.)
- Business entity type
- Date of incorporation (if applicable)
- Types of products sold
Oklahoma charges a $20 fee to apply for a sales tax permit. There’s also a convenience fee of $3.95 for paying with a Visa Debit card and a convenience fee of 2.5% for paying with any other type of card. Other business registration fees may apply, too.
Collecting sales tax
The Oklahoma state sales tax rate is 4.5%. If you are based in Oklahoma and selling to a buyer with a ship-to address in Oklahoma, you should charge sales tax based on the sales tax rate at the ship-to address.
If you are not based in Oklahoma, but have sales tax nexus in Oklahoma, you are considered an Oklahoma “remote seller.” Businesses and vendors considered remote sellers are required to collect “use tax,” which is similar to sales tax but can vary slightly from Oklahoma sales tax rates.
Businesses and sellers can research local sales tax rate with TaxJar’s Sales Tax Calculator.
Should you collect sales tax on shipping charges in Oklahoma?
As long as you separately state the shipping charges on your bill to your customer, you do not have to charge sales tax on shipping.
But if you include shipping in the price of the product you sell the customer, then shipping is considered part of the taxable transaction.
TaxJar offers additional insights about sales tax on shipping in Oklahoma.
When are returns due?
When you file and pay Oklahoma sales tax depends on two things: your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in Oklahoma?
States assign businesses a filing frequency when they register for a sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.
In Oklahoma, your business will be required to file and remit sales tax either monthly or semiannually. Oklahoma sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.
Filing sales tax
There are three simple steps to take when it’s time to file sales tax in Oklahoma:
- Calculate how much sales tax you owe
- File a sales tax return
- Make a payment
How to calculate how much sales tax you owe in Oklahoma
Calculating how much sales tax you should remit to the state of Oklahoma is easy with TaxJar’s Oklahoma sales tax report.Connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and TaxJar will calculate exactly how much sales tax you collected. All the information you need to file your Oklahoma sales tax return will be waiting for you in TaxJar.
How to file and pay sales tax in Oklahoma
You have three options for filing and paying your Oklahoma sales tax:
- File online – File online at OK Tap. You can remit your payment through their online system.
- File by mail – You can use form STS-20002 to file on paper and by mail. Keep in mind that filers who pay more than $2500 per month are required by Oklahoma to file online.
- AutoFile – Let TaxJar file your sales tax for you. We take care of the payments, too. You’ll never have to worry about spreadsheets, calculations or filling out complex sales tax returns.
