Significant Changes in Sales, Use and Withholding Taxes

Beginning in 2015, there will be significant changes for the compliance and payment of sales, use and withholding taxes in Michigan. The changes impact all filers of sales, use and withholding (SUW).

Taxpayers are encouraged to understand the impact to their registration and filing requirements before January 2015.  The changes include the following:

ALL SUW TAXPAYERS MUST FILE A RETURN

Historically, taxpayers paying by electronic funds transfer (EFT) were not required to file a separate, corresponding return. Beginning January 2015, ALL taxpayers are required to file a return REGARDLESS of how they pay.

DETAILS OF CHANGES TO SALES, USE AND WITHHOLDING FORMS FOR 2015

  • Monthly/Quarterly Returns are now a full-page form instead of the “coupon” format used in prior years. The format essentially incorporates the historical worksheet previously used to calculate the liability. Coupons and prior year forms will not be accepted starting with 2015 filing requirements. Math and discount computations will be done systematically if the return is completed electronically at Michigan Treasury Online.
  • Sales, Use and Withholding and Vehicle Pre-Paid Sales Tax Credits are now schedules included as part of the return and cannot be filed separately. These must be filed electronically.
  • The revised Sales, Use and Withholding Annual Return form is similar to the current form and math and discount computations will be done systematically if the return is completed electronically at Michigan Treasury Online.
  • NEW Separate Amended Return Forms beginning in 2015. There will be separate amended forms for the monthly/quarterly return, the annual return, and the annual return for 4% and 6% taxpayers.

THE DEPARTMENT WILL NO LONGER MAIL FORMS TO TAXPAYERS

In an effort to save the Department time and money, and to eliminate taxpayers incorrectly using prior period vouchers, the Department will no longer mail out forms and booklets.

FILING OPTIONS

There will be three filing options available to taxpayers:

  • Electronically filing through the Department’s free website: Michigan Treasury Online.
  • Electronically filing by using commercial or proprietary software approved by the Department.
  • Paper forms from the Department’s website (Fuel and Pre-Paid Sales tax Credits and Dual 4% and 6% Rate Annual Returns MUST be filed electronically).

AVAILABILITY OF ADDITIONAL E-SERVICES

Michigan Treasury Online is free of charge and will provide taxpayers with 24/7 access to their accounts and will allow taxpayers to file and pay returns electronically in one convenient transaction.

For more information regarding these changes, contact Beene Garter SALT Partner David Barrons.

Additional Resources
Michigan Treasure Online Business Services