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What does it mean to remit sales tax to the government?

Sales tax is pass thru for the company, which means they collect the cash from the customer and then pass it along to the government. When a company remits sales tax to the government, it simply means they are sending the cash to the government.

As you can see in the visual below, the money is collected by the company and then “remitted” or sent to the government (tax authority). The company sends 100% of the sales tax collected to the government.


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