- Who handles it
- Nebraska Department of Revenue
- What you file
- Nebraska Tax Application (Form 20) for the buyer, plus notice to cancel the seller's permit
- When
- Before the buyer makes the first taxable sale
Easy to miss: A buyer who sells goods under the old owner's permit number can create a tax problem for both sides. File early so the new account is ready on closing day.
The Buyer Needs a New Permit
Nebraska treats a change in ownership as a new business for sales tax. Department guidance says a change in the owner, or in the type of ownership, calls for a new permit and cancels the old one.
A buyer who runs a store, restaurant, repair shop or any business that sells taxable goods or services must hold a permit in the buyer's own name before making sales.
How the Buyer Applies
The usual application is the Nebraska Tax Application, known as Form 20, which also covers other tax accounts such as withholding.
The buyer should list the prior owner's name and permit number, which the Department asks for when a business has changed hands.
A buyer should not use the previous owner's pre filled returns. Filing under the old account causes trouble that takes months to untangle.
What the Seller Does
- File final sales tax returns through the closing date
- Tell the Department about the sale and ask to cancel the permit
- Return the paper permit if the Department asks for it
- Keep sales records until the buyer's clearance issues
The Department prefers that the buyer's application go in with or before the seller's cancellation, so a seller should coordinate dates with the buyer.
Plan Around Closing Day
Ask the buyer to file the application a few weeks before closing. The new permit should be in hand on closing day so the first sale can be taxed in the proper account.
Put the filing dates in the closing checklist along with the dissolution steps in our page on articles of dissolution after an asset sale.
City and Local Sales Tax
Omaha and some other cities add a local sales tax, collected with the state return. The buyer reports it on the same account, so a correct application covers both.
A restaurant or bar may also have local food and beverage tax duties, which the Department can explain. Ask early so the buyer's first return is right.
Seller Records After Closing
Keep your sales tax records, exemption certificates and filed returns for several years after closing. If the Department reviews your final periods, you will need them to answer questions.
Where Buyers Slip
Buyers also forget that new sales tax accounts take a few business days to set up, and busy seasons stretch that wait.
Common mistakes are waiting until the first return is due, using the seller's account or forgetting a second location. If the company holds a permit for each location, ask what is needed for every one.
Read how successor tax liability ties into this step.
This page is general information, not tax or legal advice. Confirm current forms and rules with the Nebraska Department of Revenue, your CPA or your attorney. To start planning your sale, ask for a confidential estimate.