Frequently Asked Questions About Purchasing an Existing Business
- If I purchase an existing business, how do I ensure that I will not be liable for any unpaid RST owed by the previous owner?
- If I buy a business from someone else, can I use his/her Vendor Permit number?
If I purchase an existing business, how do I ensure that I will not be liable for any unpaid RST owed by the previous owner?
You must obtain a copy of a "Clearance Certificate" from the person or entity selling the business. When a vendor sells his/her business, he/she must obtain a Clearance Certificate from the ministry to confirm that all taxes collectable or payable by that person have been paid.
If I buy a business from someone else, can I use his/her Vendor Permit number?
No. You may not transfer the Vendor Permit to yourself from anyone as it is registered under their legal name. You must contact your local Ontario Ministry of Revenue Tax Office to obtain your own Vendor Permit.
