When claiming an exemption, ensure Michigan Form 3372 (Sales and Use Tax Certificate of Exemption) is correctly executed.
Software delivered via physical media or downloaded in full is taxable as tangible property. Conversely, Software as a Service (SaaS) accessed purely via a web browser (with no downloaded code) is typically exempt . Michigan Sales Tax On Software Maintenance
Agreements that strictly provide services like troubleshooting, technical assistance, or helpdesk access are generally exempt from tax. When claiming an exemption, ensure Michigan Form 3372
Maintenance contracts for custom software (designed for a specific user's needs) are generally considered non-taxable services. Critical Factors and Exemptions For financial advice, consult a professional
AI responses may include mistakes. For financial advice, consult a professional. Learn more Michigan Sales Tax on Software and Digital Products
Out-of-state vendors must collect tax if they have a physical presence or meet economic thresholds ($100,000 in annual sales or 200+ transactions in Michigan).