Oklahoma Tax Nexus

Businesses with nexus in Oklahoma are required to register with the Oklahoma Department of Revenue and to charge, collect and remit the appropriate tax.

Generally, a business has nexus in Oklahoma when it has a physical presence there, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives. However, out-of-state sellers can also establish nexus in the ways described below.

Oklahoma nexus for out-of-state sellers

Affiliate nexus

If your business has ties to businesses in Oklahoma, including affiliates, it may have nexus. Under the Retail Protection Act (2016), a remote vendor has nexus in Oklahoma if any person (other than a common carrier) with substantial nexus in Oklahoma does any of the following:

  • Sells a similar line of products as the vendor under the same or a similar name
  • Uses trademarks, service marks, or trade names in Oklahoma that are similar or the same as the vendor
  • Delivers, installs, assembles or performs maintenance services for the vendor
  • Facilitates the vendor’s delivery of property to customers by allowing the vendor’s customers to pick up property sold by the vendor at an office, distribution facility, warehouse, storage place or other place maintained by the person in Oklahoma
  • Conducts any other activities in Oklahoma that are significantly associated with the vendor’s ability to establish and maintain a market in Oklahoma

The law also adds definitions for “marketplace provider” and “marketplace seller.”

Use tax notification requirement

The Retail Protection Act requires noncollecting out-of-state vendors that make sales to Oklahoma consumers to provide to each buyer of taxable goods a statement of the total sales made to the customer during the preceding calendar year. It must also notify the customer of their obligation to report and pay Oklahoma use tax.

See the Retail Protection Act; Oklahoma Statutes §68-1401 and 1406; OAC 710:65-1-8; OAC 710:65-15-1; OAC 710:65-15-3; OAC 710:65-21-5; and OAC 710:65-21-8.