How do I get a resale certificate in Michigan?
How do I get a resale certificate in Michigan?
Resellers should apply with the Michigan Department of Treasury for a use tax license if products are sold to consumers from a Michigan location. You may call the Michigan Department of Treasury at 517-636-6925.
What is a Michigan resale certificate?
Retailers who wish to buy items tax free for resale in the state of Michigan must present a Michigan resale certificate to the seller when making the purchase. For this purpose, Michigan provides Michigan Sales and Use Tax Certificate of Exemption form 3372 for resellers who wish to buy items tax free at retail.
Is a sales tax license the same as a resale certificate in Michigan?
The Sales Tax License allows a business to sell and collect sales tax from taxable products and services in the state, while the Resale Certificate allows the retailer to make tax-exempt purchases for products they intend to resell.
Do you need a sellers permit in Michigan?
The main state-level permit or license in Michigan is the sales tax license, also known as a seller’s permit. You must obtain a seller’s permit if you: Are engaged in business in Michigan. Intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail.
How much is a seller’s permit in Michigan?
Michigan has only one type of sales tax permit, a Sales and Use License. Currently, there is no charge for a Michigan sales permit.
What is a resale form?
A resale certificate is a document proving that you are a legitimate retailer or purchaser and are buying products to either resell or use as component parts of products you plan to resell. To use a resale certificate, you generally need to be registered to collect sales tax in at least one US state.
How do I obtain a resale certificate?
Method 1 – Obtain a copy of your customer’s current Annual Resale Certificate. You can accept paper or electronic copies. Maintain copies of the certificates (paper or electronic) for three years. Method 2 – For each sale, obtain a transaction authorization number using your customer’s Annual Resale Certificate number.
How to properly verify resale certificate?
Check the Information. There is no set form for a resale certificate.
How to obtain a resale certificate?
A resale certificate can be generated by the buyer or seller provided their certificate contains the required information. To make things easier, the Department of Tax & Fee Administration has a Resale Certificate (BOE-230) that is available for download to document tax-free transactions. BOE-230 Resale Certificate Fillable Form
When May a business use a resale certificate?
A business which is registered for sales and use tax can use a resale certificate only when the merchandise being purchased is to be resold by the business. A business cannot use a resale certificate to purchase merchandise that they will use and consume in the conduct of business.
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