(They were around long before the internet, incidentally. You think Oklahoma is going to miss out on all that sales-tax revenue just because a silly thing like the internet evolved? Heck no. Both entities - consumer and business - are required to pay use tax if no sales tax was charged at the time of purchase.
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Whether I purchased the item as a normal consumer (something for my home stereo from, perhaps) or as a small business (accounting software from ) is irrelevent. By law, I'm required to pay Oklahoma use tax on any items I purchase outside Oklahoma which are then used inside Oklahoma. It's effectively an after-the-fact sales tax on items for which you didn't, for one reason or another, pay any sales tax at the time of purchase.Īlso, if an in-state vendor didn't collect sales tax on something you purchased, but should have, you're liable for paying the use tax on that product.Ĭonsider the internet: If I purchase a book or two from, since I live in Oklahoma, (based in Washington state) won't collect sales tax on the purchase. Use Tax: Put simply, "use tax" is a tax assessed on products (and possibly services) purchased outside your state, but which are stored, used, and/or consumed inside the state. So if you're a small-business owner, and your state collects use tax, you really do need to be careful. And darn it, they want their use taxes paid as the same time as when sales taxes are due each month.Īs per law, all Oklahomans are required to pay use tax - consumers, businesses, and all - but it's the businesses that the tax collectors watch most closely. It's one of the biggest ways that our cities, counties, and states scrounge up revenue for important things like road improvements, basic infrastructure, and of course, your mayor's hairpieces.īut a whole lot of folks have never heard of "use tax." (My mother-in-law ranking high among them.) And not every state assesses it check your State Treasurer's or Tax Commissioner's website to find out.īut mine (Oklahoma) sure as heck does. (If you already know, just skip to here.)Įvery consumer and business owner knows what sales tax is - we all pay it when we purchase goods and (sometimes) services. (And keep in mind that with use tax, as with so many accounting jobs, there's more than one way to make it work in Quickbooks.)įirst, though, let's talk a bit about just what "use tax" really is. For this task, we're going to have to be a little creative. It's pretty straightforward.īut what if your business has to pay use tax?Īh, that's a different obstacle altogether, and there's no predefined way to handle it in Quickbooks. Let's face it: There's nothing tough about handling sales tax in Quickbooks.
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