Oklahoma to remote sellers: You’re required to collect and remit sales tax

The Supreme Court of the United States ruled that physical presence is no longer the sole requisite for sales tax collection in South Dakota v. Wayfair, Inc. (June 21, 2018). This allows Oklahoma to tax sales by out-of-state sellers with no physical presence in the state.

New obligations for remote sellers, referrers*, and marketplace providers took effect in Oklahoma on July 1, 2018. They have a choice: either collect and remit Oklahoma sales and use tax, or comply with use tax notification and reporting requirements for non-collecting sellers. Those with less than $10,000 in sales of taxable merchandise in Oklahoma during the previous 12 months qualify for the small seller exception.

Marketplace sales

If you’re a remote seller that makes sales in Oklahoma only through an online marketplace like Amazon or eBay, and the marketplace collects and remits Oklahoma sales and use tax on your behalf, you don’t need to register with the state or collect tax on your Oklahoma sales. If the marketplace facilitator doesn’t collect tax on your behalf, you’re responsible for doing so unless you qualify for the small seller exception.

If you make sales through multiple venues, including your own ecommerce store, you’re responsible for collecting and remitting tax on your own sales even if a marketplace facilitator or referrer takes care of compliance for other sales  — unless, of course, you qualify for the small seller exception.

The Oklahoma Tax Commission now offers simplified remote seller registration through the Oklahoma Taxpayer Access Point. Alternatively, remote sellers may register through the Streamlined Sales Tax Registration System (SSTRS) in Oklahoma and other Streamlined Sales Tax (SST) member states. Learn more about SST.

There are benefits to registering through the SST. Member states currently cover the costs of using a certified service provider (CSP) like Avalara. CSPs work within your accounting system to identify taxable transactions, apply the appropriate tax rate, and record the transaction. Learn more about Avalara and multistate sales and use tax compliance through the SST.

*A referrer is anyone that receives a consideration to advertise a remote seller’s products and transfers a buyer to the seller to complete the sale. Referrers must also elect to either collect and remit tax on behalf of the sellers, or comply with notice and reporting requirements. Additional information.