SECTION 710:65-11-1. Sales tax credits and refunds

(a)   Credits, other than for bad debts discussed below, may not be taken on the sales tax reporting form until or unless a valid letter of credit has been received from the Commission. The burden of establishing the right to, and the validity of, a credit or refund is on the vendor or purchaser claiming the credit or refund.

(b)   Credit/refund requests submitted by a vendor shall include the information set out in paragraphs (1) though (8) of this subsection (if applicable). The application for credit may be obtained from the Oklahoma Tax Commission, 2501 N. Lincoln Boulevard, Oklahoma City, OK 73194, or online at www.tax.ok.gov.

(1)   A written detailed explanation of why the credit/refund is due. (Include exemption numbers and/or an explanation on exempt customers.)

(2)   Amended reports detailing the correct figures that should have been reported. (A worksheet may be used in lieu of an amended report for each month involving an extended period.)

(3)   Copies or a list of the sales tax reports on which the sales were originally reported.

(4)   Copies of cancelled checks used to remit the tax paid.

(5)   Copies of the original invoices on which the tax was originally charged. If the number of invoices exceeds twenty-five (25), the invoices must be accompanied by an electronic spreadsheet of the invoices associated with the refund claim that relates back to the tax amount requested on the application for credit. The required fields should accurately list the customer name, invoice date, invoice number, description of the items, the taxable amount, the sales/use tax requested, period the tax was remitted, permit number the tax was remitted under, and the jurisdiction(s) for which the tax was paid.

(6)   Copies of the credit invoices or checks showing the tax collected or charged in error has been refunded to your customer.

(7)   A recap of the credit/refunds by tax type, tax period, and taxing jurisdiction.

(8)   Other documentation which may be pertinent to the requested credit/refund.

(c)   Credit/refund requests submitted by a purchaser shall include the information set out in paragraphs (1) though (5) of this subsection (if applicable). The application for credit may be obtained from the Oklahoma Tax Commission, 2501 N. Lincoln Boulevard, Oklahoma City, OK 73194, or online at www.tax.ok.gov.

(1)   The name, address, telephone number of the contact person along with the name, address, telephone number and at least the last four digits of the purchaser's identification number.

(2)   A written detailed explanation of why the credit/refund is due. Such explanation must contain sufficient factual information about the transaction and reason why the transaction is not subject to tax. (Include exemption number, if applicable)

(3)   Copies of the original invoices included in the refund request, in chronological order, from the oldest to the most current. If the number of invoices exceeds twenty-five (25), the invoices must be accompanied by an electronic spreadsheet of the invoices associated with the refund claim that relates back to the tax amount requested on the application for credit. The required fields should accurately list the vendor name, invoice date, invoice number, description of the items, the taxable amount, the sales/use tax requested, period the tax was remitted, permit number the tax was remitted under, and the jurisdiction(s) for which the tax was paid.

(4)   Additional documents which support the refund claim, for example: executed contracts, shipping documents or bills of lading, or documentation reflecting usage of tangible personal property, if not evident from the invoice description.

(5)   If the amount of the credit/refund request exceeds $10,000.00, the purchaser must also provide the following:

(A)   A statement from each vendor to whom the purchaser paid the tax setting forth each invoice included in the claim,

(B)   The amount of state, city and/or county tax collected from the purchaser and reported by the vendor and the local jurisdiction(s) for which the tax was paid,

(C)   The date on which the tax was remitted to the Tax Commission, and

(D)   A statement that the vendor has not, and will not, refund the tax to the purchaser.

[Source: Amended at 34 Ok Reg 2089, eff 9-11-17]