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How To Get An Oklahoma Resale Certificate

How To Get An Oklahoma Resale Certificate

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How To Get An Oklahoma Resale Certificate

An Oklahoma Resale Certificate is an important document that allows businesses in Oklahoma to purchase merchandise for resale without paying sales tax. This certificate is also sometimes called a “Sales Tax Exemption Certificate,” a “Reseller’s license,” or a “Certificate of Resale.”

Learn more about how an Oklahoma resale certificate works, how to get one, and more.

Related: Guide to starting a business in Oklahoma

What is an Oklahoma Resale Certificate?

When retailers purchase products to resell, they often don’t pay sales tax to the supplier on the purchase. The state sales tax will still be paid, but instead of the retailer paying sales tax, the retailer charges sales tax to their customer on the final value of the merchandise.

For instance, let’s consider a sporting goods store in Oklahoma. With a valid resale certificate, the retailer can acquire sports equipment from manufacturers without paying sales tax on the transaction. When a retail customer purchases a sports item, such as a basketball or a tennis racket, the retailer (in this case, the sporting goods store) will include the sales tax based on the full price of the item. The retailer collects the sales tax from all their transactions and periodically, typically monthly, remits the accumulated sales tax to the state.

It’s important to note that the sales tax exemption is only intended for inventory that will be resold and not for the tax-free purchase of items used in normal business operations, such as paper, pens, etc.

How to Obtain an Oklahoma Resale Certificate

Before a business starts selling products or providing taxable services, it must first get an Oklahoma Sales Tax Permit (sometimes referred to as a seller’s permit, sales tax number, or sales tax license) from the Oklahoma Tax Commission. After registering for the permit, a sales tax number will be provided by the Oklahoma Tax Commission, which will be used when filling out the Resale Certificate.

Step 1: Begin by downloading the Uniform Sales Tax Exemption Certificate*
Step 2: Identify the name and business address of the seller
Step 3: Identify the name and business address of the buyer
Step 4: Check whether the buyer is engaged as a registered wholesaler, retailer, manufacturer, seller, or lessor
Step 5: Provide a description of the buyer’s business
Step 6: Describe the tangible property or taxable services that will be purchased from the seller
Step 7: Include the Oklahoma Sales Tax Permit Number
Step 8: The purchaser will certify the property being purchased is for resale and sign and date the certificate. 

*A Resale Certificate can also be generated by the buyer or seller, provided the certificate contains the required information as outlined in Oklahoma Rule 710:65-3-33, which includes:

  • The name and address of the customer
  • The character of the transaction
  • The date
  • The amount of gross receipts or gross proceeds
  • Any other information that may be necessary to establish the nontaxable character of such transactions under the Sales Tax Code.

Oklahoma Resale Certificate FAQs

How much does an Oklahoma Resale Certificate cost?

There is no cost for a Certificate of Exemption in Oklahoma.

Does the Uniform Resale Certificate Expire?

The Uniform Resale Certificate does not expire.

Where do I file the Oklahoma Resale Certificate?

In Oklahoma, the Resale Certificate is not filed with any government agency. Instead, it is kept by the seller (the business selling the merchandise for resale).

How often is Oklahoma sales tax due?

Most new businesses are set up to file and pay sales and use tax monthly, but depending on the amount of tax collected, your business may have a semi-annual filing frequency instead.

Are sellers required to accept resale certificates?

Sellers are not required to accept resale certificates for tax-exempt purchases; however, most do. If the vendor doesn’t accept the certificate, the buyer will have to pay sales tax on the merchandise being purchased. In most cases, a credit will be provided when filing their Oklahoma sales tax return. 

What steps should a business take to accept a resale certificate?

When a business is presented with a resale certificate, the burden of proof is on the seller to verify that the buyer’s information is correct and to keep these records.  Failing to verify this information may put the liability of paying Oklahoma sales taxes on the seller.

Before accepting a resale certificate, a seller should:
– Review the resale certificate to make sure it is completely filled out. 
– Verify the purchaser’s Oklahoma sales tax permit is valid and active by visiting the Tax Commission’s Permit Lookup database.
– Sellers are also responsible for examining the certificate and evaluating whether the goods sold are reasonably consistent with the purchaser’s line of business.  For example, if the buyer’s business is a car dealership but they want to purchase office supplies tax-free, the seller should investigate further.  
– Keep a file of resale certificates. 

Is a Resale Certificate the same as a Sales Tax Permit?

No – The Sales Tax Permit and Resale Certificate are commonly thought of as the same thing, but they are actually two separate documents. The Sales Tax Permit allows a business to sell and collect sales tax from taxable products and services in the state, while the Resale Certificate allows the retailer to make tax-exempt purchases for products they intend to resell.

In addition to the Resale Certificate and Sales Tax Permit, your business may also need to register for additional items. For more information, check out our guide to Oklahoma business licenses.

Author

  • Greg Bouhl

    With over two decades as an entrepreneur, educator, and business advisor, Greg Bouhl has worked with over 2,000 entrepreneurs to help them start and grow their businesses. Fed up with clients finding and acting on inaccurate and outdated information online, Greg launched StartUp101.com to be a trusted resource for people starting a business.

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How To Get An Oklahoma Resale Certificate

How To Get An Oklahoma Resale Certificate

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