Shopify refunding tax to customer.

[pbyanonymous]

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.

Could someone please help and explain the reasoning behind this?

[seaks1031]

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]

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]

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]

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