Michigan Resale Certificate: How to Get, Use, and Accept One
Michigan Resale Certificate: How to Get, Use, and Accept One
TL;DR
Michigan buyers can document resale with Form 3372, a properly completed MTC or SST certificate, or a qualifying purchase order or signed letter.
For resale at retail, buyers provide a sales tax license number if they have one. Wholesale buyers need no license number for the claim. Michigan issues no tax-exempt numbers, and a number alone cannot establish an exemption.
A seller who obtains the required documentation within 120 days of the sale generally shifts liability for an improper exemption claim to the buyer, subject to exceptions such as seller fraud.
Sellers must retain exempt-sale records for at least four years after the tax was due.
Blanket certificates generally expire after four years, but a recurring relationship needs no renewal when sales occur no more than 12 months apart.
What counts as resale documentation in Michigan
Michigan’s Form 3372 is the state’s general sales and use tax exemption certificate. Buyers claiming resale can use it, but Michigan also accepts other properly completed formats.
What it is | When to use it | Notes |
|---|---|---|
Form 3372, Michigan’s exemption certificate | When documenting a resale purchase | Complete all four sections and select the resale reason. |
MTC Uniform Sales and Use Tax Certificate | When using a multistate certificate | Provide the information required for the Michigan claim. |
SST Certificate of Exemption | When using the Streamlined Sales Tax form | Michigan is a full SST member. |
Qualifying purchase order or signed letter | When providing the required claim information in another format | A purchase order must include the buyer’s name and address, exemption reason, and sales tax license number for resale at retail if the buyer has one. A blanket purchase order must expressly say it covers future sales. |
Sales tax license vs. resale certificate
A Michigan sales tax license shows that you are registered to collect sales tax. A resale certificate makes the exemption claim for a purchase you intend to resell. A license number by itself does not make the purchase tax-exempt.
How to get and use a Michigan resale certificate as a buyer
Download Form 3372 and complete Section 1 for a one-time or blanket purchase. Enter the order or invoice number for a one-time purchase and the seller’s name and address for either type. If sales will be spaced more than 12 months apart, enter an expiration date up to four years away. Under Michigan Treasury’s guidance, a recurring relationship with no more than 12 months between sales needs no renewal while it continues.
Complete Section 2 by indicating whether the exemption covers all items you buy from that seller or only the items you list. Claim resale only for goods you intend to sell again.
Complete Section 3 by checking Box 2 for resale at retail and entering your sales tax license number if you have one. For resale at wholesale, check Box 7. Wholesale resale does not require a license number.
Complete Section 4 with your business name, address, phone number, printed name, title, date, and business type code. Use code 07 for retail or 11 for wholesale.
Sign the certificate if you provide it on paper. Michigan does not require a signature on an electronic certificate.
Give the completed certificate to the seller, not Michigan Treasury. The seller needs your exemption claim to document the tax-free sale.
Pay use tax if you take goods from resale inventory for your own use or consumption instead of reselling them. If your exemption claim is disallowed, you assume liability for the tax, penalties, and interest, and you may have to reimburse the seller.
How to accept and verify a Michigan resale certificate as a seller
Obtain a complete exemption claim. Ask the buyer for a completed Form 3372 or an accepted alternative, such as an MTC or SST certificate or a qualifying purchase order. Form 3372 requires all four sections, including the purchase type, covered items, resale reason, and buyer information. Check that the claim covers the goods you sold. Ask the buyer to correct missing or inconsistent information before treating the sale as exempt.
Do not accept a number alone. Michigan does not issue tax-exempt numbers. A sales tax license number or federal employer identification number, without a completed exemption claim, does not document a resale sale.
Check the retail license field. For resale at retail, obtain the buyer’s sales tax license number if the buyer has one. The license number is required only if the buyer has one. Resale at wholesale does not require a license number.
Apply the 120-day rule. Obtaining a properly completed certificate or the required equivalent information within 120 days of the sale generally shifts liability for an improperly claimed exemption to the buyer. Exceptions include seller fraud. After 120 days, you can prove the sale was nontaxable by other means or obtain a completed certificate by the later of 120 days after a Treasury request or the applicable final assessment, refund denial, credit audit determination letter, informal conference decision, or final Court of Claims or Tax Tribunal order. Treasury may allow more time. Michigan Treasury’s RAB 2024-11 sets out these rules.
Record each exempt sale. Keep the buyer’s name and address, sale date, item, exemption type, and sale amount. Record the resale buyer’s sales tax license number when the buyer has one. Online and in-person sales follow the same documentation rules.
Retain the evidence. Keep the certificate or equivalent data and the sale records for at least four years from the date the tax was due. Electronic records are acceptable. Missing records can leave you disputing an audit assessment without the evidence needed to support the exemption.
Track blanket certificates that expire. A blanket certificate for sales spaced more than 12 months apart lasts no more than four years, unless the parties agree in writing to a shorter period. A recurring business relationship with no more than 12 months between sales requires no certificate renewal while that relationship continues.
Buyer and seller checklist
Buyer | Seller |
|---|---|
Get Form 3372 or another accepted exemption document. | Obtain a completed certificate or equivalent exemption information. |
Complete all four Form 3372 sections and identify the goods you will resell. | Check the purchase type, covered goods, resale claim, and buyer details. |
Provide your sales tax license number for resale at retail if you have one. Wholesale resale requires no number. | Request the retail buyer’s license number if the buyer has one. Do not accept a number alone as an exemption claim. |
Sign a paper certificate and give it to the seller. | Obtain the documentation within 120 days of the sale to generally shift liability for an improper claim to the buyer. |
Pay use tax if you use or consume goods instead of reselling them. | Keep the certificate and sale records for at least four years from when tax was due. Track nonrecurring blanket expirations under Michigan’s certificate rules. |
Common mistakes to avoid
A sales tax license number or FEIN alone cannot establish a resale exemption.
A buyer who leaves any of Form 3372’s four sections blank gives the seller an invalid certificate.
A buyer claiming resale at retail must provide a sales tax license number if the buyer has one. Resale at wholesale does not require one.
A later purchase order does not cancel a standing blanket certificate unless it identifies the date and items covered by the earlier certificate, as Michigan Treasury explains.
A blanket certificate for sales spaced more than 12 months apart cannot run beyond four years. A recurring relationship with no more than 12 months between sales does not require renewal.
A seller who discards exemption records before four years have passed since the tax was due may face an audit assessment that the seller must disprove.
FAQs
Does a Michigan resale certificate expire? A blanket certificate generally expires after four years unless the parties agree in writing to a shorter period. A recurring business relationship needs no renewal if no more than 12 months pass between sales.
Can an out-of-state buyer use one? Michigan accepts Form 3372, the MTC certificate, and the SST certificate, and a resale-at-retail claim needs a Michigan sales tax license number only if the buyer has one.
Does Michigan issue resale or tax-exempt numbers? No. Michigan Treasury does not issue tax-exempt numbers, and a license number or FEIN alone cannot establish a resale exemption.
Does the certificate need a signature? Paper certificates require a purchaser’s signature. Electronic certificates do not.
What if the seller doesn’t have a certificate at audit? A seller who obtains a properly completed certificate within 120 days of the sale generally shifts liability for an improper claim to the buyer. After that, the seller can seek a completed certificate by the later of 120 days after Treasury’s request or the applicable final assessment, refund denial, credit audit determination, informal conference decision, or court or tribunal order. Treasury’s guidance also permits the seller to prove the sale was nontaxable by other means.
Sources and disclaimer
This guide provides general information, not tax advice. Contact the Michigan Department of Treasury about your specific situation.