Michigan Laws 205.825 – Certified service provider as seller’s agent
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 205.825
- Agreement: means the streamlined sales and use tax agreement. See Michigan Laws 205.803
- Board: means the governing board under the agreement. See Michigan Laws 205.803
- Certified automated system: means computer software certified under the agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction. See Michigan Laws 205.803
- Certified service provider: means an agent certified under the agreement to perform all of the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases. See Michigan Laws 205.803
- Department: means the department of treasury. See Michigan Laws 205.803
- Fraud: Intentional deception resulting in injury to another.
- General sales tax act: means 1933 PA 167, MCL 205. See Michigan Laws 205.803
- Sales tax: means the tax levied under the general sales tax act. See Michigan Laws 205.803
- Seller: means any person who sells, leases, or rents tangible personal property or services to another person. See Michigan Laws 205.803
- State: means any state of the United States or the District of Columbia. See Michigan Laws 205.803
- Use tax: means the tax levied under the use tax act. See Michigan Laws 205.803
(1) A certified service provider is the agent of a seller, with whom the certified service provider has contracted for the collection and remittance of sales and use taxes. As the seller’s agent, the certified service provider is liable for sales and use tax due to this state on all sales transactions it processes for the seller unless the seller made a material misrepresentation or committed fraud.
(2) A seller that uses a certified automated system is responsible and is liable to this state for reporting and remitting tax.
(3) A certified service provider or a seller that uses a certified automated system is not liable for sales tax and use tax if it relied on the department‘s determination that the software program submitted to the board for certification as a certified automated system under the agreement accurately reflected the taxability of the product categories included in the software program. Relief from liability under this section does not apply if a certified service provider or a seller that uses a certified automated system has incorrectly classified an item or transaction into a product category of the certified automated system.
(4) A certified service provider is considered a seller and is eligible for relief from liability for sales tax as provided in section 12(9) of the general sales tax act, 1933 PA 167, MCL 205.62.
(5) If the department determines that an item or transaction is incorrectly classified as to its taxability by a certified service provider or by a seller that uses a certified automated system, the department shall notify that certified service provider or seller of the incorrect classification. The certified service provider or seller shall revise the classification within 10 days after receipt of notice from the department. If the classification is not changed within 10 days of notice from the department, the certified service provider or seller that uses a certified automated system is liable for the failure to collect the correct amount of sales or use tax due and owing to this state.