QUESTION DETAIL
Related User
Votes
We recently moved to Oklahoma and started a sculptor business in which we sell out of our home and at various fairs across the state and in Kansas as well. I'm looking for an Oklahoma based CPA to provide some advice on accounting for sales tax under this situation? If she sells her artwork at out of state fairs, will that impact tax treatment at all? If so, please explain.
ANSWER
Expert Jennifer Colby's Answer:
First, you need to complete the Oklahoma registration packet. Once you submit your registration, you will receive a sales tax permit from the state and that number will be used at all fairs/trade shows/art shows in the state of Oklahoma. You should not be selling anything in the state without registering to do business here first.
Second, assuming that you don't already have a Federal Employer Identification number, you will need to apply for one. You can apply online at the IRS website or you can fill out a Form SS-4 to request an EIN (longer process).
Third, before you set up as an exhibitor in Kansas, you will need to complete an application for a Kansas Sales Tax Number. If you don't get this done before you register for a particular event, don't worry, because the event coordinator should give you a packet to fill out, which will contain the proper sales tax reporting applications.
Fourth, the sales tax rate you should charge at each event/fair/art show will be clearly stated in the handbook/paperwork you receive when registering for the show or event. It is determined by combining the state and local sales tax rates.
Fifth, following each event, you will be required to file a sales tax report with the applicable state, and remit all tax due. In Oklahoma, the report is due 20 days after month-end. In Kansas, the report is due 25 days after month-end. (Oklahoma law now requires all new sales tax registrants to report and remit sales tax electronically online unless the registrant receives an exception to the electronic filing requirement. Permit holders who file online will receive a full 2.25% discount for timely filing. To report online, go to www.tax.ok.gov then select the "QuickTax" logo.
References: Oklahoma Administrative Code Section 710:65-19-9; Kansas Administrative Code Section 79-3094
State: Oklahoma, Kansas
Sales tax category: Tax compliance
Product/Service: Art
