Sales tax glossary
What is sales tax remittance?
Remittance is the act of paying collected sales tax to the state or local tax authority. Sellers collect sales tax from customers and hold it in trust for the state, then remit it with, or alongside, their sales tax return by the due date.
Example
A seller collects $4,200 in sales tax from customers in one month. When it files its monthly return, it remits the $4,200 to the state.
Why it matters for sellers
Collected sales tax isn't the business's money. Late or missing remittance brings penalties and interest, and in many states owners or officers can be held personally liable for unpaid trust fund taxes.
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Related terms
This definition is general information, not tax or legal advice. Rules vary by jurisdiction and change over time.
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