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When a business purchases inventory to resell, they can do so without paying sales tax.  In order to do so, the retailer will need to provide an Oklahoma Resale Certificate to their vendor. 

Learn more about what a resale certificate is, how to get one and more.

What is a Resale Certificate?

When retailers purchase products to resell, they often don’t pay sales tax on the purchase.  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 Tax Commission. 

For example, when a pet store purchases dog toys to sell in their store, by having a resale certificate, the pet store owner won’t pay sales tax on the transaction.  When a customer purchases the dog toy, the retailer will charge sales tax to the customer based on the full price of the toy.  The retailer will collect the sales tax from all their transactions and periodically (typically at the end of the month) send the sales tax to the state.

The resale certificate is the seller’s evidence why sales tax was not collected on a transaction.  Similar names for a resale certificate include reseller number, seller’s permit, exemption certificate or reseller’s license.  In order to prove a buyer intends to resell the product, they must provide a valid resale certificate to the seller of the goods.

Resale certificates are 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, they 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.

The Sales Tax Permit and Resale Certificate are commonly thought of as the same thing but they are actually two separate documents. The Sales Tax Permit allows a business to sell and collect sales tax from taxable products and services in the state, while the Resale Certificate allows the retailer to make tax-exempt purchases for products they intend to resell.

Read more about how to register for an Oklahoma Sales Tax Permit.  After registering, a sales tax number will be provided by the Tax Commission. This number will be listed on the Resale Certificate.

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

  • The name and address of the customer
  • The character of the transaction
  • The date
  • The amount of gross receipts or gross proceeds
  • Such other information as 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.

Uniform Resale Certificate Fillable Form

Fillable Oklahoma Resale Certificate

How to fill out the Uniform 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 in California, lessor or other
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. 

The resale certificate is kept on file by the seller and is not filed with the state.

Does the Uniform Resale Certificate Expire?

The Uniform Resale Certificate does not expire.

Are sellers required to accept resale certificates?

Sellers are not required to accept resale certificates, however most do.  If the vendor doesn’t accept the certificate, the buyer will have to pay sales tax on the merchandise being purchased.  In most cases, they will be able to get a credit for the sales taxes paid later on their sales tax filing. 

What steps should a business take to accept a resale certificate?

When a business is presented with a resale certificate, it is the seller’s responsibility to verify the buyer’s information is correct and maintain records to demonstrate the seller’s due diligence.  Failing to verify this information may put the liability of paying Oklahoma sales taxes on the seller.

Before accepting a resale certificate, a seller should:

  • Review the resale certificate to make sure it is completely filled out. 
  • Verify the purchaser’s Oklahoma sales tax permit is valid and active by visiting the Tax Commission’s Permit Lookup database.
  • Sellers are also responsible for examining the certificate and evaluating whether the goods sold are reasonably consistent with the purchaser’s line of business.  For example, if the buyer’s business is a car dealership but they are wanting to purchase office supplies tax-free, the seller should investigate further.  
  • Keep a file of resale certificates. 
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