A Michigan resale certificate is a purchaser’s documented claim that a purchase qualifies for a sales or use tax exemption, commonly because the goods are being bought for resale. Michigan’s Department of Treasury accepts Form 3372, the Michigan Sales and Use Tax Certificate of Exemption, or another acceptable format containing the required information. Michigan does not issue a separate tax-exempt number.
For a resale-at-retail claim, the purchaser generally needs a Michigan sales tax license and must provide its license number on the certificate. Michigan uses one statewide sales tax rate and has no local sales tax, so sellers do not have to determine a separate local sales tax rate for each Michigan jurisdiction. The Department of Treasury administers the tax, and businesses register through Michigan Treasury Online (MTO).
What counts as a Michigan resale certificate?
A resale certificate is the purchaser’s written or electronic claim that a particular purchase is exempt because it will be resold in a qualifying transaction. It is not a general permission to buy anything tax-free: the goods and the purchaser’s actual use must fit the exemption claimed. A purchaser that uses resale inventory for its own business or personal purposes may owe tax on that use.
Michigan accepts a properly completed Form 3372, the Multistate Tax Commission’s Uniform Sales and Use Tax Certificate, the Streamlined Sales and Use Tax Agreement Certificate, or the required information in another acceptable format. A seller should not treat a customer’s tax-exempt number, by itself, as proof of exemption. For a resale-at-retail claim, the seller must obtain the purchaser’s sales tax license number if the purchaser has a license.
How to complete Michigan Form 3372
The purchaser completes Form 3372 and gives it to the seller; it is not ordinarily sent to the Department of Treasury unless requested. Treasury’s form says the information in all four sections must be complete. First identify whether the claim covers a one-time purchase or is a blanket certificate, and provide the invoice number when the claim is for a one-time purchase. Then identify whether the exemption applies to all items or only specified items.
In the exemption-basis section, select the reason that applies. For resale at retail, enter the purchaser’s sales tax license number. Complete the purchaser information, including the business name and address, type of business, and the required identifying and contact details. A paper certificate requires an authorized purchaser’s signature and title; Treasury’s instructions say a signature is not required when the form is provided to the purchaser electronically. Do not claim an exemption merely because the form has been completed: the transaction must actually qualify.
When you need a Michigan sales tax license
A business making taxable retail sales in Michigan generally needs to register for a sales tax license. Apply through Michigan Treasury Online. Whether an out-of-state or cross-border seller must register depends on its activities and applicable Michigan rules; check the current requirements with the Department of Treasury rather than assuming that having no Michigan storefront settles the question.
A buyer claiming resale at retail should provide its sales tax license number when it has one. Michigan’s Treasury FAQ says wholesalers are not issued sales tax licenses; a wholesaler claiming an exemption should instead provide a completed Form 3372 and identify the purchase as “Resale at Wholesale.” If your business is buying for resale but is unsure which registration or exemption applies, confirm the facts with Treasury or have a compliance professional review the transaction.
Who and what may qualify for an exemption?
Eligibility depends on the legal basis for the exemption and how the purchaser will use the item. Resale is one common basis. Form 3372 also provides choices for other recognized claims, including certain purchases by qualifying organizations and other specifically described exempt uses. An organization’s status or mission alone does not establish that every purchase is exempt; the particular purchaser, item, and use must meet the applicable requirements.
Use the exemption category that accurately describes the transaction and provide any supporting information the form requests. If the right category is unclear, or the purchase involves services, mixed-use property, or a special industry rule, do not guess. The exact position depends on the circumstances; confirm it with the Michigan Department of Treasury or ask us to review it.
How long certificates last and when to renew
Michigan Form 3372 offers different approaches for blanket claims. For a recurring business relationship—where no more than 12 months elapse between sales—the form instructions say the parties do not need to renew the blanket claim while that relationship continues. If the parties do not have or may not maintain that recurring relationship, they can enter an expiration date; the form allows a maximum period of four years for that option.
A one-time certificate applies to the purchase identified, not automatically to later orders. Review blanket certificates when the purchaser’s business, exemption basis, covered goods, or relationship with the seller changes. If a certificate expires or its information is no longer accurate, obtain an updated claim before continuing to treat purchases as exempt. Check the current Form 3372 instructions for the applicable details.
When to use a blanket exemption certificate
A blanket certificate is useful when the same purchaser expects repeated qualifying exempt purchases from the same seller. On Form 3372, select “Blanket Certificate” and specify whether it covers all items or only listed items. The certificate should describe the actual scope of the exemption; a blanket claim does not make taxable purchases exempt simply because the parties have one on file.
For a continuing recurring business relationship, Treasury’s instructions provide that renewal is not required while the relationship continues and the interval between sales remains within the form’s stated condition. If that condition may not be met, the form provides for an expiration date, subject to its maximum period. Keep track of the certificate’s scope and status, and request a replacement when the claim no longer reflects the facts.
How to collect and verify exemption certificates
Collect the certificate before treating a sale as exempt. Check that the form is complete, the purchaser and seller are correctly identified, the exemption basis is selected, and the goods or services covered match the transaction. For resale at retail, capture the purchaser’s sales tax license number when it has one. Do not accept a tax-exempt number alone as evidence; Michigan does not issue tax-exempt numbers.
Compare the claim with the order, invoice, purchaser’s business, and the nature of the goods. If information is missing, inconsistent, or too broad to support the transaction, ask the purchaser to correct or clarify it before applying the exemption. Keep the certificate with the sales records and document any follow-up. A certificate is evidence of the claim, not a guarantee that the transaction qualifies.
Keep exemption records audit-ready
Maintain certificates alongside invoices, order details, payment records, shipping or delivery documentation, and records showing what was sold and how the exemption was applied. Keep a clear link between each exempt sale and the purchaser’s claim. For resale claims, retain the purchaser’s sales tax license number when applicable. Michigan law requires relevant sales and purchase records to be kept, and generally provides a four-year retention period after the tax to which the records relate is due, subject to other legal provisions.
Organize records so a reviewer can identify the transaction, the exemption reason, the certificate version in effect, and any corrections or communications. Reconcile exempt sales reported on returns to the underlying invoices and certificates. If records are incomplete or not preserved, the Department may determine tax using available information or an indirect audit procedure. Ask a tax professional to confirm retention requirements for your specific records and circumstances.
What happens when an exemption claim is invalid?
If a sale does not qualify, or the seller cannot substantiate the exemption, the seller may face an assessment for tax due, along with applicable interest or penalties under the law. A certificate does not automatically relieve a seller of liability if the transaction is taxable. A purchaser that buys goods tax-free for resale but instead uses them in a taxable way may have a use-tax obligation.
When a claim appears invalid or incomplete, pause the exemption treatment, request corrected documentation, and determine whether tax should be collected or reported. If the issue is discovered after the sale, review the transaction and return treatment promptly with a qualified adviser or the Department of Treasury. The outcome depends on the facts and applicable law; do not assume that a certificate alone resolves the issue.
Get help managing Michigan sales tax compliance
Michigan’s statewide-only sales tax structure avoids local sales tax calculations, but sellers still need to determine whether they must register, classify products and transactions correctly, collect tax where required, file returns, and retain support for exemptions. Registration and tax administration are handled through Michigan Treasury Online and the Michigan Department of Treasury.
Sales Tax Compliance USA is a done-for-you service staffed by people, not tax software. We can help ecommerce and cross-border sellers review Michigan registration needs, organize exemption certificates, assess transaction records, and manage sales tax compliance work. The right treatment depends on your business and transactions; contact us to have your Michigan position checked, or confirm a specific question directly with the Department of Treasury.
Not sure how this applies to your business? We handle US sales tax registration, filing and remittance for ecommerce sellers as a fully managed service, for one fee. Book a free consultation and we will review your own position with you.
Michigan exemption documentation: how common purchase situations differ
| Purchase situation | Michigan documentation or treatment to consider |
|---|---|
| Goods bought for resale at retail | Use a valid exemption claim such as Form 3372; provide the purchaser’s sales tax license number if the purchaser has one. |
| Goods bought for resale at wholesale | A wholesaler is not issued a Michigan sales tax license; Treasury says to provide Form 3372 and identify the claim as “Resale at Wholesale.” |
| Repeated qualifying exempt purchases from one seller | A blanket Form 3372 may be used; define whether it covers all items or only specified items and follow the form’s recurring-relationship or expiration-date instructions. |
| One identified exempt order | Use the one-time purchase option and include the invoice number the certificate covers. |
| Purchaser offers only a tax-exempt number | Do not rely on the number alone; Michigan does not issue tax-exempt numbers, and the purchaser must provide a valid exemption claim. |
| Purchase does not meet the claimed exemption or is used differently | The exemption may not apply; assess the transaction and any purchaser use-tax obligation based on the actual facts. |
Frequently asked questions
What is a Michigan resale certificate?
It is a purchaser’s documented claim that a purchase qualifies for exemption because the property is being bought for resale in a qualifying transaction. Michigan accepts Form 3372 and certain other certificates or formats containing the required information. The certificate must match the actual purchase and use.
How do I get a Michigan sales tax exemption certificate?
Download Form 3372 from the Michigan Department of Treasury, complete the sections that apply, and give it to the seller. A purchaser may also use another format accepted by Treasury, including specified multistate certificates, if it contains the required information. The purchaser completes the claim; Treasury does not issue a general tax-exempt number.
What is Michigan Form 3372 used for?
Form 3372 is Michigan’s Sales and Use Tax Certificate of Exemption. A purchaser gives it to a seller to document a qualifying exemption, including resale and other listed exemption bases. It can cover a one-time purchase or, when appropriate, repeated purchases under a blanket certificate.
Does Michigan issue tax-exempt numbers?
No. The Michigan Department of Treasury does not issue tax-exempt numbers, and a seller should not accept a number alone as proof of exemption. The purchaser must provide a valid exemption claim, such as a properly completed Form 3372.
Do I need a Michigan sales tax license to buy items for resale?
For a resale-at-retail claim, the purchaser should provide its Michigan sales tax license number if it has one, and a business making taxable retail sales in Michigan generally needs to register. Treasury says wholesalers are not issued sales tax licenses and should document qualifying wholesale resale purchases using Form 3372 marked “Resale at Wholesale.” Confirm your registration position with Treasury if your activities or sales model are not straightforward.
How long is a Michigan exemption certificate valid?
It depends on the certificate type and the relationship. Treasury’s Form 3372 instructions say a blanket claim for a recurring business relationship does not need renewal while that relationship continues and no more than 12 months elapse between sales. For a blanket claim without that recurring relationship, the form allows an expiration date up to four years; a one-time certificate covers the identified purchase.
Can I use a blanket exemption certificate in Michigan?
Yes, Form 3372 provides a blanket certificate option for repeated qualifying exempt purchases. Specify whether it covers all items or only listed items, and follow the form’s instructions for a recurring relationship or an expiration date. A blanket certificate does not exempt purchases outside its stated scope or purchases that do not qualify.
What information must be included on a Michigan resale certificate?
Form 3372 requires all four sections to be complete: purchase type and invoice information when applicable, the items covered, the exemption basis and required supporting details, and purchaser information. For resale at retail, enter the purchaser’s sales tax license number if it has one. A paper form requires an authorized purchaser’s signature and title; Treasury’s instructions do not require a signature when the form is provided electronically.
How we handle this for you
The mechanics in Michigan are manageable on their own; the cost is the time it takes every single filing period, in every state you are registered in. We are a managed service: our team registers you with the Michigan Department of Treasury, prepares and files your returns, and keeps you compliant period after period. You get one point of contact and one invoice — you do not get another dashboard to learn.
See our sales tax compliance services, check where you have obligations with the nexus calculator, or talk to us about Michigan.
Official sources
- https://www.michigan.gov/taxes/business-taxes/sales-use-tax/information/exemptions-faq
- https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/SUW/3372.pdf
- https://www.michigan.gov/taxes/business-taxes/sales-use-tax/information/sales-tax-license-faq
- https://www.michigan.gov/taxes/business-taxes/sales-use-tax/resources/who-needs-a-sales-tax-license
- https://www.michigan.gov/taxes/rep-legal/rab/2024-revenue-administrative-bulletins/revenue-administrative-bulletin-2024-11
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-205-104a
Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This page is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.
Related guides
Other Michigan guides: Amazon FBA · Audit defence · Back sales tax · Economic nexus · Filing · Foreign sellers
Resale certificates in nearby states: Ohio · Indiana
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