If SAAS satisfies the criteria for being considered taxable software, sales tax may apply, according to the Oklahoma Tax Commission. “A set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task” is the definition of taxable software. The SAAS program is taxable software and is charged sales tax if it satisfies this criterion.
There are a few exceptions, though. Sales tax is not applicable if the SAAS application is utilized for a nontaxable service. For instance, the SAAS application might be regarded as a nontaxable service and exempt from sales tax if it is utilized for medical or educational reasons.
Another exception is if a company that is exempt from paying sales tax purchases the SAAS application. In Oklahoma, several establishments, including government and nonprofit organizations, are excluded from paying sales tax. Sales tax is not charged if an exempt entity buys the SAAS application.
The next query is how to pay Oklahoma sales tax online now that we have determined whether or not SAAS is taxable in Oklahoma. The Oklahoma Tax Commission provides businesses with a number of ways to pay sales tax online. Using the Oklahoma Taxpayer Access Point (OkTAP), an online platform that enables companies to file and pay their taxes electronically, is one option. Avalara or TaxJar are two examples of third-party service providers that can assist companies with automating their sales tax compliance.
In conclusion, if SAAS satisfies the criteria for taxable software in Oklahoma, it may be liable to sales tax. Nontaxable services and exempt organizations, however, are subject to exceptions. Businesses can use the Oklahoma Taxpayer Access Point or a third-party service provider to pay their sales tax for Oklahoma online. To maintain compliance and prevent any penalties or fines, it is crucial for businesses to stay current with the latest tax rules and regulations.