Oklahoma Sales Tax Guide
Chapter 5: Filing and paying Oklahoma sales tax
You're registered with the Oklahoma Tax Commission and you've begun collecting sales tax. Congratulations! Remember, those tax dollars don't belong to you. As an agent of the state of Oklahoma, your role is that of intermediary transferring tax dollars from consumers to state and local tax authorities. Let's take a deeper look at how filing Oklahoma sales tax returns impacts your business.What does it mean to file an Oklahoma sales tax return?
Technically speaking, filing Oklahoma sales tax returns is a two-step process comprised of submitting the required sales data and remitting the collected tax dollars (if any) to state and local tax authorities.
In most states, there are a number of options for submitting sales tax data to the state. Business owners may complete a Oklahoma sales tax filing form and mail it to the Oklahoma Tax Commission or they can file electronically online. In all states, filing online is recommended.
The filing process forces the business owner to detail their total sales, the amount of sales tax they have collected, and from where. The Oklahoma Tax Commission wants to be kept up to date on your business growth (or lack thereof) to make sure they are getting the tax dollars due. By completing ongoing filing of monthly, quarterly, or semi-annual, or annual Oklahoma sales tax returns, they stay abreast of your growing company.When am I required to file my sales tax return?
The Oklahoma Tax Commission will assign you a filing frequency. Typically, this is determined by the size of your business. State governments typically ask larger businesses to file more frequently. Visit our Oklahoma filing due dates page for more information.Am I required to file and pay my Oklahoma sales tax at the same time?
Oklahoma sales tax returns must be filed and paid at the same time and are governed by the same due date.I want to webfile my Oklahoma sales tax. What are my options?
Avalara has built the TrustFile product to allow business owners a quick and easy way to prepare and webfile Oklahoma sales tax returns. Users can sign up and use the service to prepare Oklahoma returns free for 30-days.
Filers may also file directly with the Oklahoma Tax Commission by visiting their site and entering your transaction data manually. This is a free service, but preparing Oklahoma sales tax (breaking it down by jurisdiction) can be time consuming - especially for larger sellers.Can a 3rd party file my sales tax on my behalf?
Yes! Many business owners recognize they are not a tax professional and therefore, choose to outsource their sales tax sales and use tax filing to services like Avalara TrustFile or to an accountant or bookkeeper. This is a normal business practice that can save business owners time and help them avoid costly mistakes due to inexperience and a lack of deep knowledge about Oklahoma sales tax code.What happens if I file or pay my sales tax return late?
The Oklahoma Tax Commission requires at least 90 percent of tax liability to be paid by the original due date of the return. Any unpaid tax is immediately classified as delinquent and a penalty of 5 percent is charged going forward.
If between 90 percent and 100 percent of tax liability is paid by the original due date of the return, interest will be assessed on the unpaid amount, even if no delinquent penalty is assessed. The unpaid tax becomes delinquent and interest is charged at the rate of 1.25 percent per month from the date of the delinquency until paid.
Underpayment of Estimated Tax Penalty
Estimated tax payments were required if the tax liability exceeds withholding (if applicable) by $500 or more. To avoid the Underpayment of Estimated Tax Interest, timely filed estimated tax payments and withholding (if applicable) are required to be equal to the smaller of 70% of the current year tax liability or 100% of the prior year tax liability.
The Underpayment of Estimated Tax Interest due on any quarterly due date is computed at a rate of 20% per annum for the period of underpayment.
Note: No Underpayment of Estimated Tax Interest will be imposed if the tax liability shown on the return is less than $1,000.Do I need to file a return if I didn't collect any sales tax in Oklahoma?
Yes! Once you've successfully registered for and been issued a Sales Tax Permit, you are required to file at the completion of each assigned collection period regardless of whether any sales tax was collected. This is what is known as a "zero-tax filing".
Failure to submit a required zero-tax filing can result in penalties imposed on your business by the Oklahoma Tax Commission so don't take this responsibility lightly.If I close my business, do I need to file a final sales tax return?
Yes! The Oklahoma Tax Commission requires all businesses to "close their books" by filing a final sales tax return. This also holds true for business owners selling or otherwise transferring ownership of their business.Does the Oklahoma Tax Commission offer a discount for filing on time?
Vendor discounts are rebates offered to tax filers by state tax jurisdictions to compensate filers for the effort involved with collecting, filing, and remitting sales tax in a timely manner. Such discounts are frequently cited as outdated by those who see them as a tax loophole for big businesses. With online buying and SaaS services like Avalara TrustFile, the days of managing receipts, balancing books, and writing checks to the state have long since been replaced by computer automation.
The Oklahoma Tax Commission currently offers a vendor discount (also known as a dealer collection allowance) of 1% with a maximum of $2,500 per month and a minimum of no minimum.