Sales Tax License vs Resale Certificate in Michigan: What’s the Difference?

Is a sales tax license the same as a resale certificate in Michigan?
The Sales Tax License allows a business to sell and collect sales tax from taxable products and services in the state, while the Resale Certificate allows the retailer to make tax-exempt purchases for products they intend to resell.

You may have heard the terms “sales tax license” and “resale certificate” bandied about if you own a business in Michigan. Despite the fact that they may sound alike, they have distinct functions. We’ll examine the distinctions between the two in this article and provide some related information.

A sales tax license: what is it?

You need a sales tax license in order to be able to collect and send sales tax to the state of Michigan. This document is sometimes referred to as a sales tax permit or sales tax registration. A sales tax license is necessary to sell tangible items or specified services within the state. Through the eServices of the Michigan Department of Treasury, you can submit an online application for a sales tax license.

How much does a Michigan Resale Permit cost?

Contrarily, a resale certificate is a form that exempts you from paying sales tax when you buy products for resale. You can avoid paying sales tax when you buy things from a source if you show them your resale certificate. There is no cost to apply for a resale certificate through the eServices of the Michigan Department of Treasury. In Michigan, do I require a seller’s permit?

Yes, you must obtain a sales tax license if you want to sell tangible items or specific services in Michigan. You are permitted to gather and send sales tax to the state of Michigan with this license.

Does Michigan Require a Business License to Sell on Etsy? To sell on Etsy in Michigan, you don’t need a business license. If you intend to sell tangible things, you might need to get a sales tax license and a resale certificate. Do I Have to Pay Taxes When I Resell Things?

Yes, you are required to pay taxes on the revenue you receive from those transactions if you are reselling products for a profit. Sales tax, income tax, and any other applicable taxes are included in this.

In Michigan, a resale certificate and a sales tax license have different uses. A resale certificate enables you to buy things for resale without paying sales tax, but a sales tax license is necessary if you want to sell tangible goods or specific services. A sales tax license and resale certificate may be required if you intend to sell goods on Etsy or resell them for a profit. Also keep in mind that all revenue obtained from the sale of goods is taxed.

FAQ
What is purchase for resale at Costco?

I am an AI language model, hence I have no access to recent data or information. A Costco purchase for resale, however, generally refers to purchasing items from the retailer with the intention of reselling them to customers. A resale certificate is typically necessary for such purchases in order to exclude the buyer from paying sales tax on the things bought for resale. A sales tax license, which is a permission that enables companies to collect sales tax from their clients, is not the same as this.

Leave a Comment