What are the sales tax requirements for small business in Oklahoma? Monthly or Semi-annual reporting, QuickBooks setup, reporting and payment

1. SALES TAX IN
OKLAHOMA
Presented by Jane Wilson

2. Cash or Accrual?
 Sales Taxes are to be reported on an accrual
basis
 Paid for the month the sale is made
 Regardless of whether payment is received,
charged, or deferred
 Regardless of the time or manner of payment

3. Tax Rates
 State Sales Tax: 4.5%
 County Tax: vary by county
 City Tax: vary by city
 Oklahoma Sales Tax Rate Locator System:
http://www.tax.ok.gov/ratesystem.html

4. Source of Taxable Retail Sales
 Product is received by the purchaser at the
business location of the seller = Seller’s location
 Product is not received by the purchaser at the
business location of the seller = Purchaser’s
location
 See New Sourcing Rules for specific exemptions
for florists, mobile telecommunications services,
leases and rentals of property other than
transportation equipment (refer to Oklahoma Tax
Commission website)

5. “Tax Paid” Sales
 Oklahoma statutes prohibit any retailer from
advertising to any customer that the sales tax
imposed will be absorbed or assumed by the
retailer

6. What Sales are Taxable?
 Gross Proceeds, Gross Receipts, or Sale
Price
 Exclusions:
 Discounts or Coupons
 Interest or Finance Charges
 Taxes
 Delivery and Installation Charges IF separately
stated on the invoice
 For a complete listing see:
http://www.tax.ok.gov/rules/rule6507.pdf

7. Supporting Records
Requirements
 Complete and detailed records required to support
deductions made for:
 Sales for resale
 Sales to churches or government bodies
 Records should include:
 Name and address of customer
 Character of the transaction
 Date
 Amount of gross sale
 Other necessary information
 Purchaser resale number

8. Reporting, Payments &
Penalties
 Monthly Reporting:
 On or before the 20th of each month for the
previous month
 Semi-Annual Reporting:
 Total liability for any one month does not exceed
$50
 Must be approved by Oklahoma Tax Commission
 On or before January 20th and July 20th for the
previous six months
 Penalties and Interest charged from the date
the tax is delinquent until paid

9. QuickBooks Settings
 Setup Sales Tax Items in Item List
 Unique Item for each tax location (city, county or state)
 Name each Item according to Oklahoma’s “COPO” list
 5521 OKC (city) 3.875%
 5507 Edmond (city) 3.250%
 0955 Yukon (city) 4.000%
 0988 Canadian County 0.350%
 STATE 4.500%
 Setup Sales Tax Groups in Item List
 “Yukon” Sales Tax Group:
 0955 Yukon (city) 4.000%
 0988 Canadian County 0.350%
 STATE 4.500%
 TOTAL YUKON 8.850%

10. Oklahoma Tax Commission
 Monday through Friday 7:30 a.m. - 4:30
p.m.
 Taxpayer Assistance Division (405) 521-3160
 In-state Toll Free (800) 522-8165
 Facsimile Number (405) 522-4275
 www.oktax.state.ok.us

11. Questions?
 Please contact:
JaneWilson
405-720-1244 x106