Michigan Sales Tax RAB
Michigan Department of Treasury has issued an updated Revenue Administrative Bulletin (“RAB”) explaining sales and use tax exemption claim procedures and formats. The release updates and replaces the general procedures sellers and purchasers should follow when claiming exemptions under the General Sales Tax Act (“GSTA”) and the Use Tax Act (“UTA”) which were previously described in Michigan Revenue Administrative Bulletin No. 2021-18, 11/22/2021. The updated RAB is limited to addressing the enactment of Public Acts 3 and 4 of 2022, which became effective February 1, 2022. The updated RAB discusses: (1) how do purchasers claim an exemption; (2) what formats can a purchaser use to make an exemption claim; (3) can a purchaser provide a blanket exemption form; (4) is a seller required to obtain a state-issued tax exemption number from a purchaser; (5) under what conditions may a purchaser and seller use a purchase order to document an exemption; (6) when can a seller be liable for the sales or use tax on an “exempt” transaction; (7) how long must a seller retain a certificate of exemption or other supporting information; and (8) how does the Department interpret the phrase “by other means” in Mich. Comp. Laws Ann. § 205.62(7) and Mich. Comp. Laws Ann. § 205.104b(7
Michigan Sales Tax RAB
