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Can I collect sales tax from customers in different states without violating tax laws in Oklahoma? What are the requirements?

To collect sales tax from customers in different states without violating tax laws in Oklahoma, you must comply with the laws of each state where you have customers. Additionally, you must provide notification on your retail Internet website or retail catalog and invoices provided to your customers that use tax is imposed and must be paid by the purchaser, unless otherwise exempt, on the storage, use, or other consumption of the tangible personal property in Oklahoma [1.1][2.1][1.3].

Vendor to Collect Tax - Penalties for Failure to Collect [2.1]

  • Every vendor in Oklahoma shall collect from the consumer or user the full amount of the tax levied by Section 1350 et seq. of this title, or an amount equal as nearly as possible or practicable to the average equivalent thereof [2.1]:A.1].
  • Every person required to collect any tax imposed by Section 1350 et seq. of this title shall be personally liable for the tax [2.1]:A.1].
  • A vendor who willfully or intentionally fails, neglects or refuses to collect the full amount of the tax levied by Section 1350 et seq. of this title, or willfully or intentionally fails, neglects or refuses to comply with the provisions of Section 1350 et seq. of this title, or remits or rebates to a consumer or user, either directly or indirectly, and by whatsoever means, all or any part of the tax levied by Section 1350 et seq. of this title, or makes in any form of advertising, verbally or otherwise, any statement which implies that the vendor is absorbing the tax, or paying the tax for the consumer or user by an adjustment of prices or at a price including the tax, or in any manner whatsoever, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined not more than Five Hundred Dollars ($500.00), and upon conviction for a second or other subsequent offense shall be fined not more than One Thousand Dollars ($1,000.00), or incarcerated for not more than sixty (60) days, or both [2.1]:D].

Use Tax - Outreach Program to Internet Retailers [1.4]

  • The Oklahoma Tax Commission shall implement an outreach program to improve compliance by Internet and other out-of-state retailers maintaining a place of business in Oklahoma for the collection of use tax on their sales to Oklahoma residents [1.4].
  • The program shall include contacting retailers for a review of their business activities to determine if such activities may require the registration and collection of Oklahoma use taxes and the providing of information regarding the provisions of the Retail Protection Act of 2016 [1.4].

In summary, to collect sales tax from customers in different states without violating tax laws in Oklahoma, you must comply with the laws of each state where you have customers. Additionally, you must provide notification on your retail Internet website or retail catalog and invoices provided to your customers that use tax is imposed and must be paid by the purchaser, unless otherwise exempt, on the storage, use, or other consumption of the tangible personal property in Oklahoma. Vendors in Oklahoma are required to collect the full amount of the tax levied by Section 1350 et seq. of this title, and failure to do so may result in penalties [1.1][2.1][1.3]. The Oklahoma Tax Commission has implemented an outreach program to improve compliance by out-of-state retailers maintaining a place of business in Oklahoma for the collection of use tax on their sales to Oklahoma residents [1.4].

Source(s):
Jurisdiction

Oklahoma