Sales and Use Tax
Buying a Business - Successor's Liability
- If I buy an existing business will I be liable for any unpaid sales and use taxes of the seller for that business?
- If I buy an existing business will I need a new seller's permit?
- If I buy an existing business will I be liable for any unpaid sales and use taxes of the seller for that business?
The purchaser of a business (the successor) is liable for any unpaid sales and use taxes of the seller for that business. The purchaser should withhold a sufficient amount from the purchase price to cover any unpaid sales and use taxes of the seller. The purchaser can check the Circuit Court Access for delinquent tax warrant filing and satisfactions. The department cannot divulge information of outstanding potential successor liabilities prior to the business closing. The purchaser may request a "Sales and Use Tax Clearance Certificate" indicating that all Wisconsin sales and use tax liabilities of the seller for that business are satisfied.
For additional information see Clearance Certificate.
- If I buy an existing business will I need a new seller's permit?
If you buy an existing business, the seller's permit cannot be transferred to you. You must apply for a new permit. To apply online, go to Business Tax Online Registration.
For additional information see Permits.
FOR MORE INFORMATION PLEASE CONTACT:
WISCONSIN DEPARTMENT OF REVENUE
Customer Service and Education Bureau
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2776
Fax: (608) 267-1030
E-Mail Additional Questions
Last updated January 21, 2009