Delivery and Installation Charges No Longer Subject to Michigan Sales and Use Tax
Effective April 26, 2023, the Michigan Sales and Use Tax Acts were amended so that most delivery and installation charges are no longer subject to sales and use taxes in Michigan.
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To avoid being subject to sale or use tax, taxpayers must now separately itemize delivery and installation charges on an invoice and separately account for those charges in a seller’s records.
The new laws (see guidance here) further provide that the Michigan Department of Treasury will not issue any new assessments on delivery or installation charges for tax periods prior to April 26, 2023, and the department is currently working to identify and cancel all outstanding assessments and balances related to delivery and installation charges for tax periods before April 26, 2023. The new laws do not provide for refunds of tax on delivery or installation charges for taxpayers or for customers.
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