GET A MICHIGAN RESALE CERTIFICATE | FORM 3372
HOW TO GET A RESALE CERTIFICATE IN MICHIGAN?
A Michigan business license is a required document for businesses purchasing goods tax-free for resale, ensuring that sales tax is collected when the items are sold to the final consumer.
To obtain a resale certificate in Michigan, complete the following three steps:
✔ STEP 1 – Obtain a Michigan Sales Tax License: Apply to receive a Michigan Sales Tax License and Sales Tax ID Number (also called a Sales Tax Registration Number). This step is required before issuing a resale certificate.Obtain a Michigan Sales Tax License
✔ STEP 2 – Complete Form 3372: Fill out the Michigan Sales and Use Tax Certificate of Exemption (Form 3372) with your business name, address, Sales Tax ID Number, type of business, and description of purchased goods. Ensure the form is signed and dated. Download Michigan 3372 tax exemption certificate form.
✔ STEP 3 – Submit Form 3372 to Suppliers: Provide the completed Form 3372 to suppliers when making tax-exempt purchases for resale. Suppliers must verify the certificate’s validity and retain it for at least four years for audit compliance
CAN YOU GET A MICHIGAN RESALE CERTIFICATE ONLINE?
Yes. You can obtain a Michigan resale certificate online by first registering for a sales tax license. After registration, you can complete Form 3372 (Sales and Use Tax Certificate of Exemption), which serves as your resale certificate. This form is not submitted to the state but is given to your suppliers to claim tax exemption on purchases for resale.
WHAT IS A MICHIGAN RESALE CERTIFICATE?
A Michigan resale certificate is a tax-exempt form issued by the Michigan Department of Treasury that permits a business to purchase goods from a supplier that are intended to be resold without the reseller having to pay sales tax on them. Michigan resale certificate is completed using Form 3372 and requires the buyer’s business details, Tax ID, and description of purchased goods. The Michigan resale certificate is also commonly known as form 3372, resale license, reseller permit, reseller license and tax exemption certificate.
This certificate must be presented to suppliers for tax-exempt transactions, and sellers must retain it for four years to ensure compliance with Michigan tax laws.
This reseller certificate allows suppliers to know that you are legally allowed to purchase the goods without them having to charge you sales tax, since you will be reselling the goods and collecting sales tax from the consumer (end user). There is no limitation on where a reseller permit can be used as long as the seller accepts it. Also, any items can be purchased using the permit assuming that the items will be resold.
WHAT INFORMATION IS INCLUDED ON A MICHIGAN RESALE CERTIFICATE?
The information included on a Michigan resale certificate include the name (company or individual) and address of the buyer, a descriptive detail of the goods being purchased, a reference that this merchandise is intended to be resold and the accurate Michigan sales tax number. It is important that you follow the correct procedure and protocol involved in the resale certificate process. Any errors occurring during this process could cause delays or penalties to be incurred by either party.
IS A MICHIGAN RESALE CERTIFICATE THE SAME AS A MICHIGAN SALES TAX PERMIT?
No, a Michigan resale certificate is not the same as a Michigan sales tax permit. The Michigan resale certificate allows a buyer (such as a retailer) to purchase goods from a supplier (such as a wholesaler) without having to pay sales tax on the goods that would otherwise be taxable. The Michigan sales tax permit allows a company to make sales inside a state and collect/remit sales tax for those sales.
It is the responsibility of the supplier to keep a copy of the resale certificate for compliance purposes and the responsibility of the retailer to collect sales tax when the goods are sold.
In order to have a Michigan resale certificate, you must first apply for a Michigan sales tax license. The sales tax license will provide you with a Michigan Tax ID number (sales tax number) which will be a necessary field on the Michigan resale certificate.
IS A RESALE CERTIFICATE THE SAME AS AN EIN?
No. A resale certificate and an Employer Identification Number (EIN) are two different things. An EIN is issued by the IRS for federal tax identification, while a resale certificate allows your business to make tax-exempt purchases of goods intended for resale. To operate legally and efficiently, businesses often need both. Tax ID Bureau can assist in obtaining each of these documents correctly and streamline your business setup.
DO I NEED A RESALE CERTIFICATE IN MICHIGAN?
Yes, you need a Michigan resale certificate if your business is a retail or wholesale operation that does not want to be responsible for collecting sales tax on resold items and wants to avoid future tax liability.
Since sales tax is only supposed to be paid one time on a taxable good or service, then you want to make sure you are compliant at your phase of the product’s sales life. Even though sales tax is usually paid by the end user, the only way to ensure this is with a Michigan resale certificate that is properly filled out.
DO I NEED A MICHIGAN SALES TAX CERTIFICATE FOR SERVICES?
It depends on the type of services you offer. Most services in Michigan are not subject to sales tax, but certain services like telecommunications, accommodations, and amusement-related services are taxable. If your business falls into a taxable category, you will need to register for a sales tax license. If you’re unsure whether your services are taxable, it’s wise to consult a professional who can evaluate your business type and manage the registration on your behalf.
DO I NEED A MICHIGAN RESALE CERTIFICATE TO SELL ONLINE?
Yes. If you are selling tangible goods online to customers in Michigan, you are required to have a sales tax license to collect and remit sales tax. Additionally, to purchase your inventory tax-free, you’ll need to use a resale certificate (Form 3372). A
WHERE TO GET A RESALE CERTIFICATE IN MICHIGAN?
You can get a resale certificate in Michigan by registering for a sales tax license and then filling out Form 3372. This form must be given to your suppliers when making tax-exempt purchases. While the form itself is straightforward, many businesses choose to use a professional service to handle the entire process and prevent any errors that could delay operations or cause compliance issues.
WHAT IS THE AGE REQUIREMENT FOR A SELLER'S PERMIT IN MICHIGAN?
Michigan does not set a strict age requirement for obtaining a seller’s permit. However, individuals under 18 may face legal limitations when entering contracts or registering a business. In such cases, it is advisable to involve a parent or legal guardian in the process.
HOW TO USE OR ACCEPT A MICHIGAN RESALE CERTIFICATE
To use or accept a Michigan resale certificate, reciprocity laws govern its interchangeability with resale certificates from other states. You can purchase items for resale without paying sales tax if your business is registered in Michigan and holds a valid resale certificate. The resale certificate must be properly completed with all necessary information to be valid. Michigan also accepts the Multistate Tax Commission’s Uniform Sales & Use Tax Resale Certificate, which allows for tax-exempt transactions across multiple states.
Michigan generally accepts out-of-state resale certificates, provided they are properly completed and meet Michigan’s requirements. However, some states do not accept out-of-state resale certificates, including Alabama, California, Florida, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, Washington, and Washington, D.C. You may not be able to accept the buyer’s out-of-state resale certificate if they are from a non-reciprocating state.
You can purchase items (from a supplier or vendor) for resale from another state if you are located in one state and need to purchase them for resale. You should follow some best practice guidelines if you are a supplier and need to accept resale certificates from your buyers. Make sure that the certificate falls within a valid reciprocity agreement. You would not be able to accept the buyer’s out-of-state resale certificate if your buyer is from a non-reciprocating state outside Michigan.
To ensure compliance, verify that the resale certificate is properly completed and contains all necessary information. The certificate must be valid and not expired. It is also important to understand the specific requirements of both Michigan and the buyer’s state regarding resale certificates. By following these best practices, businesses can confidently use or accept Michigan resale certificates while adhering to applicable tax laws.