If you run an Ecommerce or CPG business in Oklahoma, securing an Oklahoma resale certificate, in this case, your Sales Tax Permit, is a smart move to protect your margins and streamline operations.
While Oklahoma doesn’t issue a separate resale certificate, your active Sales Tax Permit allows you to make tax-free purchases of inventory and raw materials intended for resale. This helps lower upfront costs, keeps your pricing competitive, and ensures compliance with Oklahoma’s sales tax laws.
Understanding Resale Certificates in Oklahoma
What is an Oklahoma Resale Certificate?
In Oklahoma, a resale certificate, also referred to as an exemption certificate, is a document issued by the Oklahoma Tax Commission (OTC) that allows businesses to:
- Purchase goods without paying sales tax, provided the buyer plans to resell the goods to their customers in the normal course of their business.
- Make tax-exempt purchases of inventory and materials that will become part of the products they sell by presenting a valid resale certificate to their suppliers.
The purpose is to prevent double taxation, first at the wholesale level and then again at the point of retail sale.
However, an Oklahoma resale certificate is not a blanket exemption from all sales tax obligations. Businesses are still required to collect and remit sales tax on taxable sales to end consumers.
Why do you need an Oklahoma Resale Certificate?
Obtaining a resale certificate in Oklahoma offers several key advantages for businesses that buy goods for resale:
Here are some key benefits:
- Avoid Paying Sales Tax on Inventory: You can purchase inventory tax-free, so long as the goods are for resale and your tax permit is active and valid.
- Maintain Competitive Pricing: By not paying sales tax upfront on goods you resell, you reduce your cost of goods sold, giving you pricing flexibility in competitive markets.
- Legal Compliance: Using your sales tax permit number for resale purchases ensures you’re following state rules, avoiding misclassification or penalty risks.
In Oklahoma, the required form is the Streamlined Sales and Use Tax Agreement Certificate of Exemption (SST Certificate). When completing it, you must include your Oklahoma Sales Tax Permit Number, which confirms you are registered with the Oklahoma Tax Commission and authorized to make tax-exempt purchases.
Resale Certificate vs. Sales Tax Permit: What’s the Difference?
An Oklahoma Sales Tax Permit authorizes your business to collect and remit sales tax. An Oklahoma Resale Certificate (SST Certificate) allows you to purchase goods tax-free for resale. To use a resale certificate, your business must have an active sales tax permit.
Who Can Use a Resale Certificate in Oklahoma?
Businesses that purchase goods for resale can use an Oklahoma Resale Certificate. To qualify, you must actively sell or intend to incorporate into products for resale taxable tangible products and hold a valid Oklahoma Sales Tax Permit.
How to Get a Resale Certificate in Oklahoma: A Step-by-Step Guide
Getting a resale certificate in Oklahoma is simple, but you’ll need to meet a few key requirements first. Here’s how to do it:
1. Make Sure You’re Eligible
Your business must sell taxable goods or services and be registered with the Oklahoma Tax Commission (OTC). Only businesses with a valid Oklahoma Sales Tax Permit can issue or use a resale certificate.
2. Get an Oklahoma Sales Tax Permit
If you don’t already have one, apply for an Oklahoma Sales Tax Permit through the Oklahoma Tax Commission’s TAP Portal. This permit is required before you can issue or use a resale certificate.
Need help? Read our blog: How to Get a Seller’s Permit in Oklahoma
3. Gather Your Business Information
You’ll need basic business details to complete the resale certificate, including:
- Business Identification Information: Legal business name, physical address, mailing address
- Business Entity Structure (i.e., sole proprietorship, partnership, Subchapter S Corp., corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Business Activity Details: Date & State of Incorporation, start date with the state of Oklahoma (nexus start date)
- NAICS Code
4. Complete the Proper Certificate
Oklahoma accepts two multistate forms:
- Streamlined Sales and Use Tax Agreement Certificate of Exemption (SST Certificate)
- MTC Uniform Sales & Use Tax Resale Certificate
Both forms must be properly completed. Under OAC 710:65-7-6, this means including the purchaser’s name, address, type of business, sales tax permit number, and signature.
5. Provide it to Your Suppliers
You don’t submit resale certificates to the state. Instead, present the completed certificate directly to your suppliers. Vendors must receive the document within 90 days of the sale for it to be considered valid and to relieve them of tax liability.
6. Pay Any Applicable Fees
There is no fee to use the resale certificate itself, but you’ll need a valid Oklahoma Sales Tax Permit. The application fee for an Oklahoma Sales Tax Permit is typically $20, plus potential convenience fees if paying online by card.
To see if there’s a cost for the sales tax permit, check out our guide on Sales Tax Permit fees.
7. Maintain and Renew
Your resale certificate remains valid as long as your Sales Tax Permit is active and in good standing. For recurring purchases, vendors may keep the certificate on file as a blanket certificate, which remains valid until revoked in writing.
How to Use a Resale Certificate in Oklahoma
To use your resale certificate in Oklahoma for tax-exempt purchases, you must present a properly completed certificate to your supplier at or before the time of purchase.
Under OAC 710:65-7-6, vendors are only relieved of sales tax liability if they:
- Accept the certificate in good faith
- Receive it within 90 days of the sale
- Keep properly completed documentation (purchaser’s name, address, type of business, sales tax permit number, and signature)
Out-of-State Buyers: Oklahoma generally allows vendors to accept resale certificates issued by other states, provided they contain all required information. However, acceptance is at the vendor’s discretion, and some may require you to use an Oklahoma-accepted form instead.
Always confirm the vendor’s policy in advance if you plan to use an out-of-state certificate.
Important: Misuse of a resale certificate, such as using it for personal or non-resale purchases, can result in fines, including double the amount of tax owed and administrative penalties under 68 O.S. §1356.2.
For more information regarding sales tax exemption laws in Oklahoma, you may visit the state’s website.
Multi-Jurisdictional Resale Certificates
A multi-jurisdictional resale certificate is a standardized form designed to simplify tax-exempt purchases for businesses that operate and make purchases for resale across state lines.
Unlike a standard resale certificate issued by a single state, a multi-jurisdictional certificate aims to be recognized and accepted by multiple states as valid proof that the goods being purchased are intended for resale and are therefore exempt from sales tax at the time of purchase.
However, it’s crucial to understand that not all states accept these multi-state forms, and acceptance can come with specific conditions.
Here are the two primary multi-jurisdictional forms Oklahoma may accept, with the Streamlined Sales Tax (SST) Certificate of Exemption being the most officially recognized for Oklahoma due to its SST membership:
- Uniform Sales & Use Tax Resale Certificate – Multijurisdiction Form: Accepted in many states, including Oklahoma. To use it, the form must include your Oklahoma Sales Tax Permit number.This form is issued by the Multistate Tax Commission (MTC) and is ideal for businesses purchasing in multiple states.
- Streamlined Sales Tax (SST) Certificate of Exemption: Oklahoma is not a member of the Streamlined Sales Tax Governing Board.Therefore, while an Oklahoma vendor might accept an SST Certificate of Exemption, they are primarily looking for a valid Oklahoma Sales Tax Permit or the Uniform Sales & Use Tax Resale Certificate.You can find more information about the SST and its member states on the Streamlined Sales Tax Governing Board website.
Businesses need to verify whether Oklahoma accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
Responsibilities When Using or Accepting an Oklahoma Resale Certificate
Buyer Responsibilities
If you use an Oklahoma resale certificate, you must ensure it’s applied only to purchases intended for resale. Using it for personal items or operational expenses, such as office supplies or equipment, is illegal and can result in fines of double the tax amount plus up to $500 under 68 O.S. §1356.2.
- Oklahoma-based buyers:
- You must hold an active Oklahoma Sales Tax Permit.
- You are required to provide your Sales Tax Permit number, name, address, type of business, and signature on the certificate.
- Keep a copy of the certificates you issue for your records in case of an audit.
- Out-of-state buyers:
- You may present an out-of-state resale certificate or a multi-jurisdictional form (MTC or SST), but acceptance is at the Oklahoma vendor’s discretion.
- If using these forms, you must include your home state’s permit number and ensure all fields are accurately completed.
- Be prepared to provide additional documentation if requested by the vendor.
Businesses need to verify whether Oklahoma (or their specific vendor in Oklahoma) accepts these multi-jurisdictional certificates and if there are any specific requirements or limitations on their use within the state. This is to avoid any audit issues.
Seller Responsibilities
If you accept a resale certificate in Oklahoma, you must verify it and maintain proper documentation. Under OAC 710:65-7-6, vendors are relieved of liability only if they:
- Accept the certificate in good faith: Confirm the information provided is reasonable for the type of purchase being made.
- Ensure it’s properly completed: Check for the purchaser’s name, address, permit number (or equivalent), type of business, reason for exemption, and signature.
- Receive it within 90 days: You must have the certificate on file no later than 90 days after the sale.
- Retain records for at least 3 years: Under OAC 710:65‑3‑33, you must retain certificates and related sales records for a minimum of three years from the date of the invoice or tax remittance (whichever is later).These records should clearly show the customer’s name, address, date, transaction details, and amount.
Frequently Asked Questions About the Oklahoma Resale Certificate
Are There Penalties for Misusing an Oklahoma Resale Certificate?
Yes. Misusing a resale certificate, such as using it for personal purchases or non-resale items, is illegal in Oklahoma. Under 68 O.S. §1356.2, violators may face:
- A fine equal to double the amount of sales tax due
- An administrative penalty of up to $500
- Possible misdemeanor charges, including up to 60 days in jail
Always use the certificate only for qualifying resale purchases to avoid these penalties.
Does an Oklahoma Resale Certificate Expire?
Oklahoma resale certificates, including the Streamlined Sales Tax (SST) Certificate of Exemption and MTC Uniform Certificate, do not have a printed expiration date. However, they are valid only while your Oklahoma Sales Tax Permit remains active and in good standing.
If your permit is canceled, suspended, or expires, the certificate becomes invalid.
How Do I Verify a Resale Certificate in Oklahoma?
To confirm a buyer’s resale certificate:
- Request a properly completed exemption certificate (SST or MTC form) from the purchaser.
- Confirm the buyer’s Oklahoma Sales Tax Permit number (or home state number for out-of-state buyers).
- Use the Oklahoma Tax Commission’s Sales Tax Permit Lookup Tool to verify that the permit is active.
How TaxHero Can Help
You don’t have to complicate managing sales tax compliance and resale certificates in Oklahoma. TaxHero simplifies the process, from keeping your Oklahoma Sales Tax Permit active to ensuring you use resale certificates correctly.
Save time. Avoid penalties. Stay compliant.
Schedule a Demo to see how TaxHero can streamline your resale certificate in Oklahoma process today!