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