Wine Institute has received clarification regarding the tax requirements, registration and reporting process for direct-to-consumer wine shipping in Oklahoma.
A winery must obtain a Direct Wine Shippers Permit from the ABLE Commission before registering with the Oklahoma Tax Commission to pay use tax and excise tax on wine shipped directly to Oklahoma consumers and should not apply online for a Sales Tax Permit.
A winery with an approved Direct Wine Shippers Permit from the ABLE Commission may ship wine directly to Oklahoma consumers while waiting for their application for registration as a direct wine shipper taxpayer to be processed and approved by the Tax Commission.
Registering with the Oklahoma Tax Commission as a Direct Wine Shipper
Step 1: Winery completes and submits the Oklahoma Direct Wine Shippers Permit Application to the ABLE Commission.
Step 2: Once the winery has applied to the ABLE Commission for a Direct Wine Shippers Permit, the ABLE Commission will notify the Oklahoma Tax Commission.
Step 3: The Oklahoma Tax Commission will then send a letter and business registration packet to the winery notifying them of the requirements for receiving a Direct Wine Shipper (Tax) Permit and a Vendor Use Tax Permit from the Oklahoma Tax Commission.
Step 4: Winery applies to the Tax Commission to receive the Direct Wine Shipper (Tax) Permit. Note this is separate from the ABLE Commission Direct Wine Shippers Permit.
In order to receive the Direct Wine Shipper (Tax) Permit, the following two elements are required:
1. Completed Oklahoma Business Registration Packet A (sample copy for reference)
- Packet A will be mailed to the winery by the Tax Commission and may be sent electronically via email to the winery upon request.
- Do NOT complete the Online Business Registration Application.
- Registration with the Oklahoma Secretary of State is NOT required.
- Effective March 1, 2019, the Tax Commission will NOT require a bond in order to issue a Direct Wine Shipper (Tax) Permit.
- There are no fees for a Vendor Use Tax Permit or a Direct Wine Shipper (Tax) Permit.
2. A copy of the winery’s Oklahoma Direct Wine Shipper License from the ABLE Commission.
Packet A and a Direct Wine Shippers Permit from the ABLE Commission are required without exception. Wineries that completed the Online Business Registration Application and/or already have a sales or vendor use tax permit are still required to complete and submit Packet A.
Step 5: The Tax Commission mails the winery a Vendor Use Tax Permit, Direct Wine Shipper (Tax) Permit and a Vendor Use Tax Account Confirmation letter with instructions to register for online filing.
Oklahoma Tax Commission Reporting Requirements for Direct Wine Shippers
- A Vendor Use Tax return is due annually on Jan. 20 for direct shippers only. All other Vendor Use Tax Permit holders are required to file a monthly return if they have sales.
- The Direct Shipper Alcoholic Beverage Excise Tax Return is due annually by Jan. 20.
Because some wineries are just being notified of their tax registration requirements in 2019, the Jan. 20, 2019 deadline for returns reporting direct-to-consumer wine sales made in 2018 will not be strictly enforced. If a winery received their ABLE Direct Wine Shippers Permit and shipped to consumers in 2018, the winery should file Vendor Use Tax and Excise Tax Returns reporting sales in 2018 sales as soon as their application for registration is approved.
ABLE Commission Reporting Requirements for Direct Wine Shippers
- An Oklahoma Direct Wine Shipper Annual Report is due no later than Feb. 15 to the ABLE Commission.
Information ONLY for wineries that completed the Online Business Registration Application and already have a Vendor Use permit.
- The winery should follow the step-by-by registration process and fully complete and submit Business Registration Packet A with a copy of their ABLE permit.
- The winery should file monthly Vendor Use Tax Returns and pay Use tax on wine sales shipped directly to consumers in Oklahoma until they receive their Direct Wine Shipper (Tax) Permit from the Tax Commission.
- After receiving approval from the Tax Commission, the winery’s existing Vendor Use tax account will be linked to their direct shipper account and use tax returns will be due annually rather than monthly.
Information ONLY for wineries that submitted a bond to the Tax Commission
The Oklahoma Tax Commission will NOT require a bond in order to issue a Direct Wine Shipper (Tax) Permit, effective March 1, 2019. If a winery already submitted a bond to the Tax Commission, the winery should send the Tax Commission a written request to return the bond.
Bond return requests should be sent to:
Oklahoma Tax Commission
Taxpayer Assistance Division
2501 Lincoln Blvd.
Oklahoma City, OK 73194