Did you ever get a resolution for this?
Topic summary
Issue: Partial refunds in Shopify appear as net-only adjustments with no VAT/sales tax deduction. Full refunds correctly reverse net and tax, but partial refunds do not reflect tax in tax reports.
Context/Mechanism: A reporting app explains Shopify’s “refund discrepancy” behavior. When refunding less/more than the line’s full amount, Shopify cancels the product line (and its tax) and posts any difference as a refund discrepancy with no tax rate, affecting net sales but not tax.
Impacts reported:
- Exports to accounting (e.g., Xero) come through as no-VAT credits, requiring manual fixes.
- Merchants argue tax is over-reported and net sales under-reported when partial refunds don’t reduce tax in reports.
Evidence/Resources: A screen-share video is provided demonstrating the issue: https://www.loom.com/share/bffc884184f140d69513171cc7e9fae2 (central to understanding the claim).
Requests/Disagreement: Merchants urge Shopify to fix partial refund tax handling and note similar complaints dating back years. The app provider offers custom reports to break out lines and schedule exports.
Status: No confirmed Shopify fix or official resolution in the thread. Key open question: how to ensure VAT/sales tax is properly adjusted and reported for partial refunds in Shopify and downstream exports.
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