Financing, tax rates, and accounting
I just realized yesterday that I was accidentally charging sales tax for out of my state where I don’t yet have nexus. How do I go about refunding this for customers? And once refunded will it show that sales tax has been refunded?
Refunds need to be manually processed one by one as they can't be done in bulk. When processing the refund, you'll type in the amount for the refund. You can then enter a reason for the refund and send a notification to the customer.
It will not show that the refund tax specific outside of the note you've made in the reason box. You'll want to manually adjust your books to account for the refunds you've made.
Trevor | Community Moderator @ Shopify
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You may not be able to refund your customers in that case. I would recommend contacting an accountant to determine the implications of having charged taxes in a region you weren't supposed to.
Trevor | Community Moderator @ Shopify
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- Was your question answered? Mark it as an Accepted Solution
- To learn more visit the Shopify Help Center or the Shopify Blog
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