Oklahoma Eliminates DTC Bond Requirement
March 8, 2019
By Maureen Herrera, Director of Compliance
Oklahoma made some additional tweaks to the permitting process for wineries planning to ship direct-to-consumer (DTC) orders into the state. Effective immediately the bond requirement rolled out in early January 2019 for Direct Wine Shippers Permit was rescinded by the Oklahoma Tax Commission (OTC) on March 1, 2019. This change eliminates a multi- step activity in the drive to be compliant by the Oklahoma playbook.
If a bond has already been submitted, you can send a written request to return the bond. The Tax Commission states they will return the bonds once the move through the influx of new registrations. Bond return requests should be sent to the following address:
Oklahoma Tax Commission
Taxpayer Assistance Division
2501 Lincoln Blvd
Oklahoma City, OK 73194
Oklahoma DTC Shipping Rule Review
Any client who has received the Direct Wine Shippers Permit from the ABLE Commission can begin to ship even if they do not have a tax permit from the OTC.
With the new DTC Permit available the old Federal on-site provision exception allowing Oklahoma consumers’ orders to be shipped back to their home without a license no longer applies, so anybody shipping DTC must get a permit with the ABLE Commission before shipping on-site or off-site sales to consumers in Oklahoma.
Wineries must ship from their in-house licensed premise. The ABLE Commission has interpreted the DTC law as prohibiting wineries from utilizing a fulfillment warehouse to ship wine on their behalf and only shipping with UPS as FedEx has not approved Oklahoma as a winery direct shipment state at this time.
Tax Commission and Permit Requirements
- Submit application for Oklahoma Direct Shippers Permit to the ABLE Commission ($300), once received then the Commission will notify the Oklahoma Tax Commission
- The Oklahoma Tax Commission will then send a letter and business registration application to the winery notifying them of their requirements and the winery applies to the Tax Commission for Direct Wine Shipper (Tax) Permit and Vendor Use Tax Permit. After receiving it, wineries should A) File for Oklahoma Business registration Packet A B) Submit copy of Direct Shipper License Permit from the ABLE Commission
Once all documents are filed and approved, OTC will send Direct Wine Shipper (Tax) Permit and Vendor Use Tax Permit reporting frequencies to change from monthly to annual. There is no fee to apply for the Direct Wine Shipper (Tax) Permit or Vendor Use Tax Permit.
Reporting Rates and Dates
The current tax rate for OK DTC wine shipments is 4.5%
Use Tax is reported to the Tax Commission annually by January 20
Excise Tax is reported to the Tax Commission annually by January 20
Direct Shipments are reported to the ABLE Commission annually by February 15
If your organization needs assistance with the ever-changing requirements to be compliant when shipping wine, reach out to us for assistance.
Useful Links on Oklahoma DTC Shipping:
Wine Institute: Oklahoma Clarifies Tax Requirements for DTC Shipping
Past Compli Blog Posts on Oklahoma DTC shipping
Oklahoma Simplifies Direct Wine Shipper Permit Application
Oklahoma OKs DTC Wine Shipping Application in Advance of 10/1 Start Date