Resources Blog Reporting
by TaxJar December 18, 2024
Oklahoma requires online marketplaces to collect and remit sales tax on behalf of 3rd party sellers or comply with “ use tax notice and report ” requirements.
This law requires that “Marketplace facilitators” in Oklahoma either collect Oklahoma sales tax on behalf of 3rd party sellers or elect to comply with Oklahoma’s notice and report requirements . The law also requires that remote sellers who make at least $10,000 in aggregate sales in Oklahoma in a 12 month period to either collect sales tax or comply with notice and report requirements.
Let’s break it down.
Under the Oklahoma law, a “marketplace facilitator” is someone who “lists or advertises tangible personal property for retail sale on any ‘forum,'” and “directly or indirectly, through agreements or arrangements with third parties, collects the purchaser’s payment and sends it to the seller.” In other words, this is similar to the laws in Washington and Pennsylvania that require marketplaces like Amazon, Walmart and Etsy to collect sales tax on behalf of sellers on the platform. The bill is effective immediately.
The law refers to websites and online marketplaces as “forums.”
The marketplace facilitator has two options:
Keep in mind that this is just a summary and it’s a good idea to read the bill yourself or consult with a sales tax expert about how this bill applies to your business. You can read the entire Oklahoma Marketplace Facilitator law here .
Under the law, a remote seller is someone who:
Note: It’s important to highlight that this law applies only to online sellers who do not have nexus in the state of Oklahoma . The purpose of economic nexus laws and notice and report laws like this one are to require out-of-state sellers who were not previously liable to collect sales tax to be required to collect and add money to the state’s coffers.
Remote sellers who make at least $10,000 in aggregate sales to buyers in Oklahoma in the previous 12 calendar months (on a rolling basis) are required to either:
If you make at least $10,000 in aggregate sales to buyers in Oklahoma we recommend speaking with a sales tax expert to determine your best course of action.
A “referrer” for the purposes of this law is a person who:
Like marketplace facilitators and remote sellers, referrers with at least $10,000 in aggregate Oklahoma sales in a calendar year must elect to either collect sales tax from Oklahoma buyers or comply with notice and report laws.
Any marketplace facilitator, remote seller or referrer who elects to comply with the notice and reporting requirements but fails to do so, faces the lesser of:
The penalty is assessed separately for each violation but can only be assessed once per calendar year. For five years after this penalty provision takes effect, the OTC can abate or reduce the penalty or interest due to hardship or good cause.
Ready to automate sales tax? Sign up for a free trial of TaxJar today .
It's time to solve your tax complexity
Talk to a TaxJar expert about automating your sales tax compliance.