Oklahoma: Sales Tax Handbook
What constitutes sales tax nexus in Oklahoma?
One of the more complicated aspects of Oklahoma sales tax law is sales tax nexus, the determination of whether a particular sale took place within the taxation jurisdiction of Oklahoma, and is thus subject to state (and possibly local) sales taxes.
If a vendor's transactions are determined to have nexus in Oklahoma, the vendor must register for a Oklahoma sales tax license and collect appropriate sales taxes from the buyer for all transactions with nexus in the state. On this page, we have compiled some of the most commonly needed facts about what constitutes sales tax nexus in Oklahoma.
Sales Tax Nexus in Oklahoma
According to Oklahoma's law, retailers who have tax nexus can be defined in several distinct ways. To have tax nexus, the business must meet a minimum of one of the following requirements:
Having an office or any other place of business within the state's boundaries, the regular presence of any employees, agents or any other representatives in Alabama, the delivery of goods to customers located in the state using vehicles which are oned by the taxpayer, or has goods stored in any sort of warehouse or inventory stored within the state.
For additional details on sales tax nexus law in Oklahoma, see the nexus information page from the Oklahoma Tax Commission at http://www.ok.gov/usedcarcommission/documents/rulesreg.pdf
Taxation of Internet-Based Sales in Oklahoma
NOTE: 2018 Supreme Court Ruling Regarding Online Sales Taxes
In the 2018 Supreme Court case South Dakota vs. Wayfair Inc, Et Al., the court overturned a previous ruling that required a merchant to have physical nexus in order for a state to collect sales tax. This means that any state is now free to enforce collection of sales taxes on out-of-state online merchants. The information provided here may be subject to change, and many states are expected to begin collecting online sales taxes following this ruling.
Depending on the situation, Oklahoma may or may not charge sales tax on Internet-based transactions. Any seller who is selling any sort of tangible personal property to purchasers who are located in the state of Oklahoma through the Internet, and who has contracted with any sort of entity to both perform and provide the maintenance and/or installations for the seller's purchasers in the state can be defined as a retailer "retailer."
The nexus status and taxability of Internet-based sales, by vendors and/or consumers within Oklahoma, have been the subject of hot debate in recent years. You can learn more on our introduction to Internet-based sales taxes.
Does my business have tax nexus in Oklahoma?
The folks at the sales tax compliance company Avalara are an approved Oklahoma sales tax partner, and you can use their free Oklahoma nexus wizard tool to determine whether or not your business has nexus, and is therefore required to pay Oklahoma sales taxes. If you're interested in automating your sales tax collection and filing process, click here to get more information.
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