Shopify refunding tax to customer.

pbyanonymous
Visitor
1 0 4

Hi there,

 

We are launching our store very soon and have a question about sales tax. Our company is registered in New York and has a license to charge customers for sales tax. We placed a test order on our store to ensure everything was working correctly come time of our release. Everything went smoothly at first, tax was calculated and tax was also collected. However, after placing the order, the tax amount was automatically refunded for the full amount. When checking the order on the Shopify admin side, a notification saying the following was visible (view image as well):

"Tax amount was updated from $11.54 USD to $0.00 USD." It then shows that we only paid $130.00 for the order even though originally it showed $141.54 on the checkout page.Screen Shot 2023-08-27 at 6.40.32 PM.png

 

Could someone please help and explain the reasoning behind this?

Replies 11 (11)

seaks1031
Visitor
1 0 1

I've been having the same exact issue. I am out of Illinois and this week is the first time I've been experiencing this problem but its happening on multiple orders including a test one I processed. 

Jag2023
Visitor
2 0 2

Yea I’m selling from New York. I have the same issue. Losing money once this tax quarter comes around. Might have to email them, came here thinking someone would’ve responded

Honor_Printing
Tourist
3 0 1

I was having this same issue this week where the sales tax was being refunded back to the customer without my knowing about it. The solution for me was to make sure the product was setup as a "shipping" product and not a "digital" product as the digital products were not collecting sales tax (well, they were collecting it but then refunding it at my expense). My items for sale were apparel (t-shirts/hoodies) so I had to go into each variant (size) of my product and check the box for "shipping" at the very bottom and then save it each time. That seems to have done the trick for me.  The pic below has the area circled in red that I had to check. Again, this has to be done for each variant and saved. Hope this helps someone.

 

Honor_Printing_0-1696550078243.png

 

 

Twoskip
Tourist
5 0 2

Hey Jag2023, have you resolved this issue? The below response by Honor_Printing didn't fix mine. Thanks

Jag2023
Visitor
2 0 2
Hey yea so the idea was that they only return taxes where it wasn’t
applicable. So if u didn’t need to pay taxes on that sale they would return
it to the buyer.

Twoskip
Tourist
5 0 2

Thanks for getting back! Okay, that makes sense. Just weird because it was collecting tax on these items up until a week ago. Maybe there was an update.

Binsky
Visitor
1 0 0

Having the same issue here. It hasn't always been this way for me.

Have you gotten any new updates to this? 

I suppose it's just already stated, taxes are collected where applicable?

Thanks!

Honor_Printing
Tourist
3 0 1

See below. I just posted about my experience with this same issue and what fixed it for me...

Twoskip
Tourist
5 0 2

Hi Pbyanonymous, I too am in NY and am having the same issue. Have you resolved this yet? if so please shed some light on what you did to correct it!

nwaPLASMA
Tourist
7 0 2

Im in arkansas and have the same issue randomly. Mostly on manually created orders. And I always select “shipping required”.  

T112
Visitor
1 0 0

Same problem here. My variant does not show the option of "This product requires shipping". Seemingly, this option has been replaced with "This is a physical product". This option has been checked in my case. The sales tax was updated to 0.00 USD causing me some loss and headache.