Do I Need a Resale Certificate in Michigan?

Resale Certificate for Tax-Free Purchases

Retailers who wish to buy items tax free for resale in Michigan must present a resale certificate to the seller. Michigan provides a form for resellers to buy items tax free at retail. To obtain a resale certificate in Michigan, visit the Department of the Treasury website to download the form. Obtaining the certificate is free. Present it to your vendor and keep a copy.

You can choose an expiration date on the form, up to four years. In Michigan, it’s the purchaser’s responsibility to ensure lawful use of the certificate. Vendors are not required to accept resale certificates. Verify your buyer’s ID is valid by calling the Department of Treasury.

Sales Tax Licenses and Certificates

Resellers should apply with the Department for a use tax license if products are sold to consumers from a Michigan location. A seller’s permit in Michigan is a sales tax license. It provides a business with a Tax ID number. The Sales Tax License allows selling and collecting tax. The Resale Certificate allows tax-exempt purchases to resell.

Licensing in Michigan

The fee to establish an LLC in Michigan is $50. Contractors bidding a job are subject to sales tax on all materials used in construction contracts. Resale certificates assure the buyer has a Tax ID and buys to resell goods. Keep certificates on file as long as they’re valid.

If your state issues you the same number, please provide us with a copy of your completed resale certificate to show that your business is permitted to resell wholesale purchases. Expect 8-10 days for processing a Michigan sales tax license. This license must be displayed at each location.

Leave a Comment