Refunding Sales Tax

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New Member
2 0 0

I mistakenly charged sales tax to some of my customers.

I saw this thread:

https://ecommerce.shopify.com/c/shopify-discussion/t/refund-sales-tax-erroneously-charged-via-shopif...

Just to clarify, the refund is a flat amount. So if my product is $25.00 and my sales tax is $1.75, I can just refund the $1.75 as a flat amount? Or would my refund of $1.75 be taken from the prinicipal $25.00, causing a recalculation of the intended sales tax for that sale?

 

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Shopify Expert
195 0 25

Hi David,

The refund will just come off of whatever the customer was charged. From what I take Shopify is not doing anything to the order except reducing the amount paid and marking the order as partially refunded. 

Attached is a screen shot of what this looks like on an order.

-Ryan

Stop Stressing About Shopify You’ve Got Better Things To Do => https://320ny.com/shopify/
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Explorer
49 0 23

but if you initially charged tax on the item, when you do a partial refund how is reporting handled?  I would have thought that Shopify assumes the $25 item (inclusive of tax) fell by $1.75 by virtue of refund and hence will then reduce your tax reporting not by $1.75 but my $1.75 times your tax rate.  Doing a partial refund may get customer back their money but you will need to track this through to reports and back out certain tax values and re-apply for this transaction because for you the $1.75 is tax you do not intend on paying to the tax man but Shopify is not going to reduce your reported tax liaiblity by $1.75 by effecting a partial refund as above.

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Shopify Expert
195 0 25

I see your point. To be honest I would not rely on Shopify's tax report to calculate your tax liability and perhaps how to handle that is a question for your tax accountant. 

Stop Stressing About Shopify You’ve Got Better Things To Do => https://320ny.com/shopify/
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