Partial Returns - Sales Tax Impact

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New Member
3 0 0

Hi - I'm hoping somebody has some experience with this as I'm hitting a dead end. We are currently on Shopify Plus, TaxJar and Loop Returns. From what I've seen, partial returns are fully refunded to the customer as product and not allocated to taxes. For instance, if a product within an order was $100 (consisting of $90 product and $10 tax) and the order consists of multiple products and that one order is returned and refunded, Shopify refunds $100 and doesn't breakdown that $10 of the refund was sale tax. As a result Tax Jar thinks we owe $10 of sales tax to the state, when in reality we don't. Thus, we'd be overpaying sales tax because partial returns are not reflected. I can't be the only one with this issue. Any tips?!

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New Member
2 0 0

I'm having a somewhat similar problem, maybe. When I refund the shipping on an order, it refunds the sales tax, but then offsets that refund in the returns column.  I'd been including it in sales taxes, to make my invoice balance out, but when I report the sales taxes, it doesn't. Here's an example:Sales tax issue.jpg

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Tourist
8 0 6

You're not the only one with this issue, unfortunately. I have the same thing with customers who want to apply a coupon after the fact. If they purchase something for $50, and say that they forgot their coupon, and I refund them 10%/$5, it doesn't return their sales tax to them for that amount. I have posted about this before, and I cannot believe it still hasn't been fixed. You have to manually keep track of these partial refunds outside of Shopify to adjust sales tax. if you've had any luck, please let me know.

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Tourist
5 0 0

Same problem here! 

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