Proper Handling of Tax-Exempt Sales
Michigan does not issue “tax exempt numbers” and a seller is not permitted to rely on a number in lieu of a valid exemption claim. When a customer claims a tax exemption, the dealership must obtain a properly completed Michigan Department of Treasury Form 3372 (rev 02/25) to substantiate the claim.
Reminder: It is the dealer’s responsibility to remit sales and use tax on applicable transactions. A valid and completed exemption certificate (Form 3372) is the dealership’s protection during an audit. Failure to comply may result in the assessment of tax, penalties, and interest.
What You Need to Do:
- Obtain a completed Form 3372 from any customer claiming tax-exempt status.
- Keep the form on file at the dealership for reference in the event of a sales tax audit (either of your dealership or your customer).
- Update the form if the business name or tax status changes.
- For ongoing relationships, consider requesting a new form every three years to ensure accuracy and compliance.
Selecting the Type of Exemption Use: Dealerships must determine the appropriate certificate type based on the nature of the customer relationship:
A) One-Time Purchase – For single, non-recurring transactions.
B) Blanket Certificate – Recurring Business Relationship – Valid as long as transactions occur within a 12-month period.
C) Blanket Certificate – Up to Four Years – Best for customers with intermittent purchases over several years.
Please review the Treasury form linked above for further details. If you have questions you may contact MADA at (800) 292-1923.
Reviewed 08/2025
