How To Get An Oklahoma Resale Certificate [2023 Guide]

A resale certificate is an important document that allows businesses to purchase merchandise for resale without paying sales tax. This certificate is also sometimes called a “Sales Tax Exemption Certificate,” a “Reseller’s license,” or a “Certificate of Resale.”

In order to obtain one, the retailer will need to provide an Oklahoma Resale Certificate to their vendor. 

Learn more about what an Oklahoma resale certificate is used for, how to get one, and more.

What is a Resale Certificate?

When retailers purchase products to resell, they often don’t pay sales tax to the supplier on the purchase. The state sales tax will still be paid, but instead of the retailer paying sales tax, the retailer charges sales tax to their customer on the final value of the merchandise. The collected sales tax is then sent by the retailer to the Oklahoma Tax Commission.

For instance, let’s consider a sporting goods store in Oklahoma. With a valid resale certificate, the retailer can acquire sports equipment from manufacturers without paying sales tax on the transaction. When a retail customer purchases a sports item, such as a basketball or a tennis racket, the retailer (in this case, the sporting goods store) will include the applicable sales tax based on the full price of the item. The retailer collects the sales tax from all their transactions and periodically, typically at the end of each month, remits the accumulated sales tax to the state.

The purpose of the certificate is to provide evidence of why sales tax was not collected on a transaction. Similar names for a resale certificate include reseller number, seller’s permit, exemption certificate, wholesale license, or reseller’s license. In order for the supplier to allow the tax-exempt purchase, the seller needs proof the buyer intends to resell the product by providing a valid resale certificate.

The sales tax exemption is only intended to be used for inventory that will be resold and not intended for the tax-free purchase of items used in normal business operations such as paper, pens, etc.

Getting Started

Before a business starts selling products or providing taxable services, it must first get an Oklahoma Sales Tax Permit from the Oklahoma Tax Commission. The Sales Tax Permit is sometimes referred to as a seller’s permit, sales tax number, or sales tax license.

How to Obtain an Oklahoma Resale Certificate

Filling out the certificate is pretty straightforward, but is critical for the seller to gather all the information.

If audited, the Oklahoma Tax Commission requires the seller to have a correctly filled out Resale Certificate.  Without it correctly filled out, the seller could end up owing sales taxes that should have been collected from the buyer in addition to penalties and interest.  

Steps for filling out the Uniform Sales & Use Tax Certificate

Step 1 – Begin by downloading the Uniform Sales Tax Exemption Certificate 
Step 2 – Identify the name and business address of the seller
Step 3 – Identify the name and business address of the buyer
Step 4 – Check whether the buyer is engaged as a registered wholesaler, retailer, manufacturer, seller, or lessor
Step 5 – Provide a description of the buyer’s business
Step 6 – Describe the tangible property or taxable services that will be purchased from the seller
Step 7 – Include the Oklahoma Sales Tax Permit Number
Step 8 – The purchaser will certify the property being purchased is for resale and sign and date the certificate. 

A Resale Certificate can also be generated by the buyer or seller, provided the certificate contains the required information as outlined in Oklahoma Rule 710:65-3-33, which includes:

• The name and address of the customer
• The character of the transaction
• The date
• The amount of gross receipts or gross proceeds
• Any other information that may be necessary to establish the nontaxable character of such transactions under the Sales Tax Code.

Instead of making a form, the Uniform Resale Certificate can be used.  This is a multi-jurisdiction form which means it can be used as a Resale Certificate in any of the states listed on the form.

Oklahoma Resale Certificate FAQs