When it comes to sales tax, Michigan is a bit complicated. Luckily, we’re here to help simplify things for you. In order to be exempt from sales tax in Michigan, you must have a valid Resale Certificate on file with the supplier. This certificate allows the reseller (businesses who buys goods or services for the purpose of resale) not to charge any sales tax on their purchases, and shifts the liability of any unpaid sales tax onto themselves.
There are two ways of sharing a reseller’s certificate: by submitting an existing reseller certificate to the business or, by creating a reseller certificate on third-party platforms such as Avalara, Tax-exempt, etc. Whichever way you choose, make sure that the owners of the certificate are validated and that all necessary steps are undertaken to ensure its validity.
In order to register for a sales tax permit in Michigan, businesses will need personal and business identification information as well as information about their major business activity and entity type. They’ll also need to know which locations their offices or other places of business are located in relation to Michigan’s 6% sales tax rate.
Sales tax rate – 6.000%
Information required to register for a sales tax permit in the state of Michigan
1) Personal and business identification information
2) Major business activity
3) Business entity type
Locations of offices or other places of business
There are certain purchases or rentals that can be made without paying sales tax. You can use nails, fabric and wood to make a chair, or items that you will rent out as tangible personal property, real property, or services.
The purchaser does not need to circle one of the bullet points on the form in order for it to be valid- simply filling out and signing the form is enough. The address on the certificate doesn’t have to match the location address of your company. It just needs to include your business name and be up-to-date.
An Annual Resale Certificate can be accepted by a selling dealer if it has only one owner and no d/b/a. This type of certificate is valid for any type of transaction (store, e-commerce). The selling dealer can also continue to sell tax exempt products to this customer (for example, on charge account or cash-on delivery basis).
You have two options to share a reseller’s certification by the reseller. Either submit an existing reseller certificate or create a reseller certificate through third-party platforms like Avalara, Tax exempt, etc.
Michigan is a state in the Great Lakes region of the upper Midwestern United States. Its name derives from a gallicized variant of the original Ojibwe word ᒥᓯᑲᒥ (mishigami), meaning ‘large water’ or ‘large lake’. With a population of nearly 10.1 million and a total area of nearly 97,000 sq mi (250,000 km2), Michigan is the 10th-largest state by population, the 11th-largest by area, and the largest by area east of the Mississippi River. Its capital is Lansing, and its largest city is Detroit. Metro Detroit is among the nation’s most populous and largest metropolitan economies.
Michigan is the only state to consist of two peninsulas. The Lower Peninsula is shaped like a mitten. The Upper Peninsula (often called “the U.P.”) is separated from the Lower Peninsula by the Straits of Mackinac, a five-mile (8 km) channel that joins Lake Huron to Lake Michigan. The Mackinac Bridge connects the peninsulas. Michigan has the longest freshwater coastline of any political subdivision in the world, being bordered by four of the five Great Lakes, plus Lake St. Clair. It also has 64,980 inland lakes and ponds. Michigan has the second-most water of any state, behind only Alaska.
The area was first occupied by a succession of Native American tribes over thousands of years. In the 17th century, French explorers claimed it as part of the New France colony, when it was largely inhabited by indigenous peoples. French and Canadian traders and settlers, Métis, and others migrated to the area, settling largely along the waterways. After France’s defeat in the French and Indian War in 1762, the region came under British rule. Britain ceded the territory to the newly independent United States after Britain’s defeat in the American Revolutionary War.Source