Sales Tax Procedures

Level I
Sales Associate

Revision Date: November 20, 2015

12660

Sales Tax Procedures

TO:  All Employees

 

SUBJECT:  Acceptance guidelines for Sales, Manufacturers and Agricultural Tax Exemption Permits.

 

PURPOSE:  Define acceptable methods to verify Tax Exempt Permits and provide traceability of tax exempt sales.

 

SCOPE:  This policy applies to all customer sales associates and Accounts Receivable personnel.

 

RESPONSIBILITY:  Any one allowing a Tax Exempt Sale is responsible for acquiring the proper Tax Permit and to retain a copy for Accounts Receivable files.

 

IDENTIFICATION:

 

A.  Sales Tax Permit OR Manufacturer Sales Tax Permit

  1. Name and address on permit must be the same as the business making the purchase.  i.e.:  A company, physically located in Oklahoma City, cannot use a permit issued to their branch in Tulsa.
  2. The Permit Expiration Date must not have passed.
  3. Permits received for cash sales must have an area code and phone number written on the copy.  The copy is to be given to the proper Accounts Receivable Personnel.

SalesTaxPermitsExamplesAandBpdfIcon

 

 

B.  Manufacturers Limited Exemption Permit

  1. Name and address on permit must be the same as the business making the purchase.  i.e.:  A company, physically located in Oklahoma City, cannot use a permit issued to their branch in Tulsa.
  2. The Permit Expiration Date must not have passed.
  3. Permits received for cash sales must have an area code and phone number written on the copy.  The copy is to be given to the proper Accounts Receivable Personnel.

 

C.  Agricultural Permits

  1. Name and address should match person or entity making purchase
  2. The Permit Number will have either six (6) or ten (10) digits.
  3. The Permit Expiration Date must not have passed.
  4. Permits received for cash sales must have an area code and phone number written on the copy.  The copy is to be given to the proper Accounts Receivable Personnel.

SalesTaxPermitsExampleCpdfIcon

 

 

D.  Non-Profit Exemption Letter & Permits

  1. Letter must be on Oklahoma Tax Commission Letter head;OR
  2. Permits will look like a Sales Tax Permit but will specify – Church, School, Government, Disabled Vet.
  3. Name and address of the Organization must be correct.
  4. Letters & Permits received for cash sales must have an area code and phone number written on the copy.  The copy is to be given to the proper Accounts Receivable Personnel.

Note:  A “Request for Non-Taxed Sale” must be filled out by any customer who claims to be exempt but cannot provide a copy of his Sales. Manufacturers or Agricultural Permit at the time of sale.  This information must be verified BEFORE a Non-Taxed Sale is processed.

 

SalesTaxPermitsExampleDVetSalesTaxPermitspdfIcon

 

ExampleNonProfitLetterSalesTaxPermitsExampleDNonProfitpdfIcon

 

SalesTaxPermitsExampleDpdfIcon

 

Requirements for Non-Taxed Cash Tickets

All Non-Taxed Cash Tickets are Required to Show the Following Information:

Name of Purchaser

Name of Business Reflected on the Permit

Address, City, State, Zip

Phone Number

Tax Permit Number & Expiration Date

This information may be placed in the Ticket Header or typed into Ticket Comments.  (Reference Memo: Using Ship-To Maintenance in the Order Program.)  Order Header field 141 should be changed to “N” and field number 142 should be “10.”

Note;  A “Request for Non-Taxed Sale: must be filled out by any customer who claims to be exempt but cannot provide a copy of his Sales, Manufacturers, or Agricultural Permit at the time of sale.  This information must be verified BEFORE a Non-Taxed Sale is processed.