Collecting Oklahoma Sales Tax is crucial for any business. Oklahoma sales tax rules are complex, and non-compliance penalties can be severe. It’s important to understand the rules and stay up-to-date on changes to avoid costly mistakes. It’s also important to have the proper documentation on hand, including exemption certificates for customers.
Generally, businesses that collect sales tax in Oklahoma must register for a tax permit and keep meticulous records. These records are critical in the event of an audit. If you need clarification on your company’s compliance status, consider consulting with a sales tax professional.
Oklahoma Sales Tax laws are based on the concept of “nexus.” Nexus refers to a connection with the state that legally requires the collection and remitting of sales taxes. This connection can be either physical or economic. In most cases, nexus is established when a buyer purchases tangible personal property from a seller in the state.
How to Pay Oklahoma Sales Tax?
To pay sales tax, you will need to know the local and state rates for each region in which you operate. You can use a simple calculator or our free lookup tool to find the right combined rate for each region. You should also be aware of shipping taxes, which can be significant in some regions.
You must collect sales tax on all taxable goods and services sold in Oklahoma, regardless of where the buyer is located. If you have economic nexus in the state, you must also collect use tax on all products that are shipped to Oklahoma.
As a consumer, you typically won’t directly pay Oklahoma sales tax. The seller you purchase from collects the tax at the register and then remits it to the state. However, if you run a business that collects sales tax in Oklahoma, you can choose the preferred method, which is through the Oklahoma Taxpayer Access Point (OKTAP).
You can also mail a check or money order along with a Oklahoma Sales Tax Return (Form STS-20002) to the Oklahoma Tax Commission. The mailing address is on their website.
Oklahoma Sales Tax Due Dates
If you’re a business that collects sales tax in Oklahoma, you’ll have to file returns and remit the collected taxes by certain dates. This is because these tax dollars don’t belong to your company; they’re the property of the state of Oklahoma.
Depending on your sales tax registration status, you’ll be required to file monthly or quarterly. Oklahoma sales tax returns are due on the 20th day of the month following the reporting period. If the filing due date falls on a weekend or holiday, it’s typically extended to the next business day. Those who fail to file on time will face interest and penalty charges.