Do you need to get a Sales Tax certificate in Michigan State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in Michigan
- You have a distribution location such as a storage area or warehouse space
- Your business has taxable services in the state of Michigan
What constitutes taxable services in Michigan State?
The majority of service businesses are not taxable in Michigan. The exceptions would be service business that manufactures or fabricates a product.
Why do you need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Michigan?
As a wholesale company conducting business in the state of Michigan, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you need to collect sales tax on shipping and handling of merchandise?
If you sell tangible personal goods in Michigan that are taxable, than in almost all cases you would charge sales tax on shipping and handling charges.
Is there sales tax on drop shipments in the state of Michigan?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Michigan are required to have sales tax added
Are there any exemptions to taxable items sold?
Groceries, raw materials and machinery, certain specific agricultural and industrial equipment, medical devices, newspapers, and custom downloaded software are tax exempt