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Avalara Help Center

Set Up Michigan Returns

This article applies to:Returns Central

Tell Us Where You Collect Tax

Add Michigan to the places where you collect tax. This tells AvaTax to calculate tax on Michigan transactions. See the Michigan Department of Treasury website for details about nexus, registration, and taxes in Michigan.

Before you add Michigan, there are two things you need to do:

Michigan has both sales and sellers use tax. Pick the right tax type based on the way your business is registered and the tax return you need to file.

When you select the tax type for Michigan:

  • Set the tax type to Sales Tax if you're required to report only sales tax
  • Set the tax type to Sales or Sellers Use Tax if you're required to report sellers use tax

If you owe consumer use tax on your purchases, be sure to import the purchase transactions before you approve your returns.

"Sourcing" determines the location where a sale is taxed. Michigan is a destination-sourced state.

Add Your Company Locations

Michigan doesn't require location reporting on the returns. Add any physical locations you have in Michigan to enhance your company setup and track sales by location.

Schedule Your Returns

After you tell us where you collect tax and add locations, you're ready to schedule returns. Go to Returns in AvaTax to provide a funding power of attorney and schedule your returns

Your company name and taxpayer ID from Your Company Details show up on your returns. Make sure they match what’s on your registration information.

Use this info to schedule your returns. Keep in mind that the selections you made when you told us where you collect tax, any location codes you entered, and the forms you select are related and should tie together.

  • If you're registered to file Streamlined Sales Tax (SST) with the State of Michigan, open a support case to set up SST reporting
  • Michigan requires you to file an annual return (MI 5081), and may also require you to file a monthly return or a quarterly return (MI 5080) with monthly prepayments. The state determines your filing frequency based on your recent tax liability and may notify you of frequency changes electronically or by mail.
    • Select the MI 5081 Annual Sales Tax Return to file annually
    • Select the MI 5080SU form in addition to the annual form, if you're required to file monthly or quarterly
    • Enter your company's nine-digit Federal Employer Identification Number (FEIN) as your Registration ID
    • Enter the username and password for Michigan Treasury Online
  • Accelerated payments (or prepayments) may be required if you average more than $720,000 in sales or use tax annually. If you're required to make these prepayments, you must make them yourself. Avalara can't make these payments for you.
    • Prepayments are calculated at 75% of your tax liability from the current year, the previous month or the same month of the previous year (whichever is less)
    • Prepayments are applied for the month the return is due. For example, the prepayment for April is made on the March return which is due April 20. The prepayment made for April on the March return will be credited against the April return which is due May 20.
    • The state notifies you in writing if there are any changes to your accelerated filing status
    • Accelerated filers must file and remit electronically. Be sure that the correct username and password for filing electronically were entered when you schedule the return.
    • See the Michigan Department of Treasury website or contact the Michigan Department of Revenue at 517-636-6925 for more info about prepayments

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