Remitting sales tax
Objective: Record tax remittances and reconcile the balance.
Recommended first: Sales tax basics
At each filing period, the business pays the tax collected. The Sales Tax Payable balance should equal tax collected since the last remittance. Differences point to tax charged at the wrong rate or sales coded incorrectly.
Before remitting, reconcile Sales Tax Payable with the tax shown on sales records for the period. Differences usually mean tax was charged at the wrong rate, a sale was coded as non-taxable by mistake, or a remittance was recorded twice. Keep records of each filing and payment.
Filing deadlines and forms are set by each jurisdiction. In exercises, the remittance date and amount are given; in real work, follow current official instructions for your location.
Check your work
- Does the payable match tax collected for the period?
- Is the remittance recorded against the liability?
- Are any differences explained?
Pay $412 collected last month.
| Account | Debit | Credit |
|---|---|---|
| Sales Tax Payable | $412.00 | |
| Cash | $412.00 |
Common mistakes
✗ Treating the remittance as an expense.
✓ It settles a liability.
Guided practice
Use hints freely here.
Item 1 of 1
Remit sales tax
On Mar 20, 2026, Two Wheels Bike Repair pays the Westmara revenue office the $567.00 of sales tax it collected last month.
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Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 2
Cash sale with sales tax
On Mar 12, 2026, Two Wheels Bike Repair sells $845.00 of repair services in the fictional state of Westmara, which charges 6% sales tax on repairs. The customer pays $895.70 in cash.
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References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.