Oklahoma § 68-1354.23 - Simplified Sales and Use Tax Administration Act Certified service provider defined - Seller liability

§ 68-1354.23. Simplified Sales and Use Tax Administration Act Certified service provider defined - Seller liability

A. A certified service provider is the agent of a seller, with

whom the certified service provider has contracted, for the

collection and remittance of sales and use taxes. As the seller’s

agent, the certified service provider is liable for sales and use

tax due each member state on all sales transactions it processes for

the seller except as set out in this section.

A seller that contracts with a certified service provider is not

liable to the state for sales or use tax due on transactions

processed by the certified service provider unless the seller

misrepresented the type of items it sells or committed fraud. In

the absence of probable cause to believe that the seller has

Oklahoma Statutes - Title 68. Revenue and Taxation

committed fraud or made a material misrepresentation, the seller is

not subject to audit on the transactions processed by the certified

service provider. A seller is subject to audit for transactions not

processed by the certified service provider. The member states

acting jointly may perform a system check of the seller and review

the seller’s procedures to determine if the certified service

provider’s system is functioning properly and the extent to which

the seller’s transactions are being processed by the certified

service provider.

B. A person that provides a certified automated system is

responsible for the proper functioning of that system and is liable

to the state for underpayments of tax attributable to errors in the

functioning of the certified automated system. A seller that uses a

certified automated system remains responsible and is liable to the

state for reporting and remitting tax.

C. A seller that has a proprietary system for determining the

amount of tax due on transactions and has signed an agreement

establishing a performance standard for that system is liable for

the failure of the system to meet the performance standard.

Added by Laws 2001, c. 272, § 10, eff. Nov. 1, 2001.