# Vendor's compensation

> Vendor's compensation — The share of collected sales tax a seller may keep, in states that allow it, for filing and paying on time — usually a small percentage, often capped.

Source: https://lopifi.com/glossary/vendor-s-compensation
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is vendor's compensation?** In accounting, vendor's compensation means the share of collected sales tax a seller may keep, in states that allow it, for filing and paying on time — usually a small percentage, often capped.

## Also known as

- Timely filing discount

## Words this system refuses for it

- sales tax refund
- rebate

- **Category:** Tax
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** vendor