Category Archives: FAQ

This is taxing: Third in a series

First things first: we are not tax accountants, we are experienced crafters and event planners. What works for us will probably work for you but you MUST discuss your unique situation with the state tax commission.

Now you’ve got your permit and you are ready to file your sales tax report. Here’s what the tax commission expects you to know:

When and how do I report and pay sales tax?
For most sales tax permit holders, the sales tax from sales made within the state from the first through the last day of the month must be remitted to the Oklahoma Tax Commission on or before the twentieth day of the month following the month in which the sale was made.

Oklahoma sales tax law authorizes semi-annual filing when the tax remitted by the vendor does not exceed $50 per month. Semi-annual sales tax reports are due by July 20th (for the period covering January through June) and January 20th (for the period covering July through December).

Sales tax permit holders whose returns average $2500 or more per month (measured by the previous fiscal year) must participate in the Tax Commission electronic data interchange program.

It’s really important to keep track of your sales. When you file, you will want to know your total sales for the month. You will also want to know where you made the sale, if it was a service fee or other legal exemption.
You can file your taxes in person at the tax commission but I highly recommend using the QuickTax filing site. Either way, you will want to have some information handy when filing. Here is what you’ll need:

Tax Permit number
PIN number
Bank account & routing number
Total Sales for the month
Total exemptions (schedule N)

VERY IMPORTANT: Keep your payment confirmation number in a safe place. You will need it to prove you paid if there is ever a dispute.

Consider taking a free workshop with the tax commission: http://www.tax.ok.gov/btwkshps.html

As always, for specific questions and the most accurate information, please contact the Oklahoma Tax Commission.

– JD McCoy

This is taxing – second in a series

First things first: we are not tax accountants, we are experienced crafters and event planners. What works for us will probably work for you but you MUST discuss your unique situation with the state tax commission.

If you don’t already have a sales tax permit, you need to decide if you should have one.
How do you know?

If you are selling something tangible, within Oklahoma, that’s not a service, on a regular basis; you should apply for your permit.

If you only sell occasionally, you don’t need a permit. You will still collect, file and pay sales tax when you do sell.

Assuming that you do need a permit, the first thing you want to do is fill out one of these.

You can mail it in or take it in, in person.

The author displaying a custom t-shirt blanket

I’ve been told that it’s much faster if you actually take it in yourself. You should receive your tax permit in the mail soon. Be sure to keep it in a safe place and make a few copies. You will want to have the copies when you go shopping for crafting supplies or anything you will resell. Most stores will want a copy of your permit and it saves time if you’ve already got one to give them.

What’s that FIEN and do I need one of those too?
A FIEN is a Federal Employer ID Number. Answer the questions here to decide if you need one. FYI, if you want your business name on your bank account (and customers to be able to write checks to your company name) you will need an FEIN to open that business account.

Next in this series: tips on how to file and pay your sales tax.

Great links here and here for starting a business
Consider taking a free workshop with the tax commission
or with the Small Business Development Commission.

As always, for specific questions and the most accurate information, please contact the Oklahoma Tax Commission.

– JD McCoy

Wrangling your Sales Tax in Oklahoma – first in a series

First things first: we are not tax accountants, we are experienced crafters and event planners. What works for us will probably work for you but you MUST discuss your unique situation with the state tax commission.

Ok, so you did it. You put yourself out there, signed up to do a craft fair and suddenly realized you probably need to know more about paying Oklahoma sales tax. Let me try to help you with that.

jd
The author at her prize-winning booth at an Oklahoma art event

When you do a craft show in Oklahoma, the promoter (in our case, Deluxe) should provide you with a form from the tax commission on the day of the show. This form should be filled out and returned at the end of the event whether you have a permit or not.

If you have a permit, completing the form is easy: Fill out the top half (just a little business info) and return it.

If you do not have a permit, it’s still pretty easy.
You will fill out the bottom half and calculate your tax payment. The form will have a different tax rate preprinted on it depending on the location of the show. Not a big deal, just know that it’s not the same everywhere.

Give the form and your payment to the show promoter.

“What happens if I ignore the form? I mean no one came and asked me for it, or, I pay my taxes online.” If you do not return your form, eventually, you should get a letter from the tax commission requesting payment, even if you already filed online. This is because the show promoter is required to submit a complete list of artists for each event. The tax commission won’t know what you filed and what you didn’t. Follow the instructions on the letter in order to be compliant.

That’s it. That’s all there is to sales tax at shows. Later this week, we’ll post tips on how to decide if you need a sales tax permit and how to apply for one.

For specific questions and the most accurate information, please contact the Oklahoma Tax Commission.

– JD McCoy

FAQ – For Visual People

Frequently Asked Questions

Don’t have the attention span to -oooh, a squirrel- read our Frequently Asked Questions page? We think it’s important so we’ve animated it.