To legally offer taxable goods or services in the state of Michigan as a business owner, you must possess a sales tax license. Every two years, this license must be renewed in order to comply with Michigan tax regulations. The process for renewing your Michigan sales tax license will be covered in this article, along with some frequently asked issues regarding resale certificates, use tax, and Form 5081.
Your Michigan sales tax license can be renewed in a fairly simple manner. The Michigan Department of Treasury’s e-Services system allows you to renew your license online, or you can mail in a physical Form 518. The steps to renew your license online are as follows:
2. After logging in, pick “Sales Tax License Renewal” from the dropdown menu under the “Sales, Use and Withholding Taxes” tab.
3. Complete your renewal application and pay the renewal fee by following the onscreen instructions. Currently, a two-year renewal costs $16. 4. You will get a confirmation email from the Michigan Department of Treasury once your renewal application and payment have been processed.
You can download and complete Form 518 from the Michigan Department of Treasury’s website if you’d rather renew your license by mail. Send the finished form to the address on the form, along with a check or money order for the renewal charge.
Use tax is a charge on products or services that are bought outside of Michigan but are used there. For instance, you might be required to pay use tax if you buy a piece of equipment from a vendor in another state and use it in your Michigan-based company. Use tax is normally computed and reported on your Michigan sales tax return at the same rate as sales tax.
No, in Michigan, a resale certificate and a sales tax license are two distinct things. You can only collect and submit sales tax on taxable products and services if you have a sales tax license. Contrarily, a resale certificate enables you to make purchases of products for resale without having to pay sales tax on those purchases. In other words, a resale certificate allows you to avoid paying sales tax twice: once when you buy items for resale and again when you sell them to customers and collect the applicable sales tax. How Can I Obtain a Certificate of Resale?
You must fill out Form 3372 and deliver it to the Michigan Department of Treasury in order to acquire a resale certificate there. You must fill out the form with details about your company and the kinds of products you intend to buy for resale. You will get a resale certificate once your application is accepted, which you can use to show sellers when you buy products to resell.
Who Submits a Form 5081? Use tax on purchases of tangible personal property and taxable services that were not subject to Michigan sales tax is reported and paid using Form 5081. Businesses and individuals that owe usage tax must submit Form 5081 together with the required payment. Use tax may be due for a number of reasons, including using out-of-state goods in your Michigan firm or buying products online from suppliers who don’t charge Michigan sales tax. Use tax omission is subject to penalties and interest charges.
The Michigan Department of Treasury is where you may pay your sales tax in Michigan.