Tax refund

[Catchu]

If you issue a partial refund for taxes will you incur any fees?

[DaisyVo]

Hi @Catchu 

I see you’re asking about whether issuing a partial tax refund on Shopify will result in any fees. Let me break it down for you.

How Shopify Handles Refunds & Fees

When you issue a refund—whether it’s for a full or partial amount (including just taxes)—Shopify does not refund the transaction fees that were originally charged. This applies to both Shopify Payments and third-party payment gateways.

What Happens With a Partial Tax Refund?

• If you refund only the taxes, Shopify will not return the transaction fee portion. You’ll still incur the original processing fee from when the order was first placed.
• For stores using Shopify Payments, the original credit card processing fee (percentage + fixed fee per transaction) is non-refundable as of late 2020.
• If you’re using a third-party payment gateway (e.g., PayPal, Stripe, etc.), their refund policies depend on their own terms—some may charge extra fees for refunds.

Workaround If You Need To Refund Taxes Only

If the refund is due to a tax exemption or an error, a store credit or discount for the same value could be an alternative instead of refunding the actual tax amount. This avoids losing out on transaction fees.

Hope this clears things up! If you need any other assistance, feel free to reply and I will try my best to help.

Best regards,
Daisy