| Filed by | The seller closes the account; the buyer registers on its own |
|---|---|
| Agency | Florida Department of Revenue, plus your county tax collector or city for local business tax |
| Timing | Promptly after closing, with a final return covering the last period |
Watch for: Keep proof that you notified the Department and a copy of the final return with your closing records.
The Account Stays Open Until You Close It
Your sales tax registration belongs to you, not to the business you sold. After closing, returns can keep coming due, with penalties for returns you do not file, even if you have no sales.
So closing the account is part of the sale, not an afterthought.
Tell the Department of Revenue
Florida's guidance says to notify the Department right away when you close or sell a business. The fastest route is the online account update on the Department's website. You can also write to the Department.
Give your account details and the date of sale. If you have more than one location, list each. The Department's site names the current method, so use what it shows today.
File a Final Return
Your last return covers the period from your most recent return up to the closing date. Report all taxable sales through that date and pay the tax due.
Older Department instructions asked for this within a short window after closing, so file as soon as you can.
Check the box or note that it is a final return. If your sale included inventory or equipment, ask your CPA how those sales are reported, since some assets are taxed on the sale and others are not.
The Buyer Registers Separately
Registrations do not transfer. A new owner needs a Florida Business Tax Application, form DR-1, before it starts collecting tax, and the new owner may be asked to display its own certificate of registration.
This is a good point to remind the buyer: the buyer should not use your account number.
Local Business Tax Receipts
Many Florida counties and cities charge a local business tax and issue a receipt, which used to be called an occupational license. These are set locally, renew on local schedules and usually do not move to a new owner.
Ask your county tax collector and your city what to do when you sell: cancel, or let it lapse, and whether the buyer must apply fresh.
Other Taxes Tied to the Account
If you collect other taxes, such as local discretionary surtax or tourist taxes, the same close out applies. Also look for use tax accounts and fuel or other special registrations that may need their own notice.
Records to Keep
- A copy of the notice you sent the Department and any confirmation
- The final return and proof of payment
- Any receipt or certificate from the Department used at closing
- Local business tax receipts and cancellation letters
Keep these with your sale documents for at least the period your CPA recommends. Questions can arrive long after closing.
If You Sold Only Part of the Business
If you keep a location or a product line, do not close the account. Update it instead to remove what you sold. Your CPA can tell you what the Department expects in that case.
What to Do Next
Next in line are payroll taxes, covered in Florida reemployment tax transfer when a buyer takes over, and your property return, covered in Florida tangible personal property return in the year you sell.
Before closing, read Florida sales tax successor liability when you sell a business to see why buyers ask for proof.
When the Buyer Is Slow to Register
Sometimes a buyer keeps operating under your account number for a few weeks while its own registration is pending. Do not allow it. Sales made under your number can become your tax problem.
Put a date in the purchase agreement by which the buyer must have its own registration, and say who answers for any tax collected before then. Your attorney can add a short clause.
Refunds and Credits
If you overpaid in your last period, ask your CPA how to claim a refund or credit. Closing an account does not by itself end that right, but claims have deadlines, so do not let them sit.
Sources and a Caution
This page draws on the Florida Department of Revenue's guidance on closing or selling a business, its tax application instructions and county tax collector pages.
It is general information, not tax or legal advice. Confirm the details with your CPA or attorney.
If you are still planning the sale, the valuation form is free, or you can call (305) 555-0147.