I sold some stuff for 200 dollars, the total was 222.11 with GST, I gave a 30 dollar discount and took 192.11 in cash from the buyer. Now that the costumer wants a cash refund. Am i supposed to them the full 192 dollars that they gave me? Am i not liable to pay tax to the government on this “sale”? Even though I am not making any money from it? (Forgive me, I’m new to taxes)
If the customer is returning the product, then you’re essentially ‘cancelling’ the order. So you should be good to issue them a full refund, including taxes.
If you have any doubt, then you should contact a local tax professional for confirmation.
But just speaking from experience (I’m from Canada), whenever I return a product to a store (in person) for a full refund, they also give back the taxes that I paid. I also refund the whole amount (including taxes), whenever I have a customer for my stores/businesses that I need to refund.
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