You might be asking if you have to charge sales tax if you own a business and intend to sell software in Oklahoma. Yes, sales tax must typically be collected on software purchases in Oklahoma. There are a few exclusions and unique guidelines, though.
You must apply for a sales tax permit with the Oklahoma Tax Commission if you want to sell software there. Once you obtain your permit, you can use the state’s Taxpayer Access Point (TAP) system to file and pay your sales tax returns online.
You must register for TAP and link your account to your sales tax permit in order to use it. From there, you can file your taxes and send money to the appropriate places using an electronic funds transfer (EFT) or credit card. Remember that depending on your sales volume, you will either need to file returns monthly or quarterly and remit payment.
The state sales tax in Oklahoma is currently set at 5%. Nevertheless, according on where your buyer is located, there may also be county and local sales taxes that apply. You must use the Oklahoma Tax Commission’s online lookup tool to find the rate applicable to the customer’s address in order to calculate the right sales tax rate to charge.
In most cases, you won’t need to collect sales tax if you sell software to clients outside of Oklahoma. However, you might also need to collect sales tax in that state if you have a physical presence there (like a store or office).
Does Oklahoma accept certificates from my home state for resale? Software buyers who intend to resell the product may give you a resale certificate to avoid paying sales tax on the transaction. Resale certificates from other states are typically accepted in Oklahoma as long as they are legitimate and contain all the necessary information.
However, Oklahoma might not recognize the resale certificate if it is from a jurisdiction where software is not subject to sales tax. Additionally, a resale certificate might not be acceptable for software sales if it is for a different kind of goods (such tangible personal property).
You can submit Form STS20002 to the Oklahoma Tax Commission to request a tax exempt number if your business or government organization is exempt from Oklahoma’s sales tax. Along with your application, you must include documentation proving your tax-exempt status.
When making purchases, you can avoid paying sales tax by giving retailers your tax exempt number once you have one. Remember that not all transactions are exempt from sales tax, therefore it’s crucial to comprehend the guidelines and conditions that apply to your particular circumstance.
In conclusion, you should normally charge sales tax on your purchases if you want to sell software in Oklahoma. Do your homework and comprehend your responsibilities as a seller because there are several exceptions and unique regulations to be mindful of. You can ensure compliance and avert expensive fines by signing up for a sales tax permit, using TAP to file your taxes, and keeping up with the most recent rules.
When sales tax was not collected at the time of purchase in Oklahoma, the consumer use tax is levied on tangible personal property bought for use, storage, or consumption within the state. Online and out-of-state sellers who do not charge the Oklahoma sales tax are likewise subject to this levy. The Consumer Use Tax is charged at the same rate as the present sales tax of 4.5 percent.