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Wayfair Comes to Michigan

Michigan has enacted post-Wayfair legislation requiring remote sellers to register with the state and collect Michigan sales taxes beginning 10/1/2018. 

Like Wisconsin’s post-Wayfair sales tax rule, Michigan’s rule exempts certain remote sellers from collecting and remitting sales tax. Remote sellers are not required to register to collect sales tax if: (i) their sales to Michigan purchasers in the previous calendar year do not exceed $100,000, or (ii) they did not engage in more than 200 transactions with Michigan purchasers in the previous calendar year.

If you sell goods and services subject to sales tax to customers in Michigan and do not fall within either of the exceptions above, you will need to register with the Michigan Department of Treasury as soon as possible and start collecting and remitting sales tax on 10/1/2018.  See https://www.michigan.gov/taxes/0,1607,7-238-43519_43521 — -,00.html for additional information on the registration process.  

You should also review your current invoice terms and conditions, agreements, and other documents that might refer to sales tax, and update them as necessary to reflect your obligation to collect and remit Michigan sales tax.

You can find more information on Michigan’s taxation of remote sellers here.

DISCLAIMER: The information provided is for general informational purposes only. This post is not updated to account for changes in the law and should not be considered tax or legal advice. This article is not intended to create an attorney-client relationship. You should consult with legal and/or financial advisors for legal and tax advice tailored to your specific circumstances.

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