Michigan State Sales Tax Online Registration

Any business that sells tangible personal goods or taxable services within the state of Michigan to customers located in Michigan is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in Michigan must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.

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

Register for a Michigan sales/use tax number

Michigan state, county, city, & municipal tax rate table

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