@Shopify please fix this huge SALES TAX ISSUE! Partial refunds don’t adjust the correct sales tax!!
This is so unbelievable that I need to even explain this issue, it’s 2023!!
I made a screen-share that outlines the problem in clear detail. - https://www.loom.com/share/bffc884184f140d69513171cc7e9fae2
I feel bad for all the merchants that don’t realize this is happening on Shopify. If any merchant remits the sales tax based on what Shopify says under Tax Reports they are over paying sales tax!! Essentially because Shopify doesn’t do this, it’s ripping off merchants without them even realizing it.
When giving a partial refund to a customer, Shopify DOES NOT subtract the appropriate amount of sales tax which means sales tax remains the same in the reports even though a portion of this sales tax was refunded to the customer.
This results in two HUGE Problems in the Shopify Reports!!
1. Since sale tax is unchanged, its always over-reported (remitting this amount would be overpaying and ripping off merchants)
2. Shopify takes this amount out of the net amount which under-reports net sales. This means that net sales are always under-reported.
For another example, lets say a customer is exempt from sales tax and made a purchase, then requests a refund for this amount. Let’s say the sales tax is $200.
Since you can’t subtract the sales tax amount Shopify will take this $200 out of net sales instead! So now sales tax will be inflated by $200 and net sales will be ROBBED of $200.
This is so unbelievable that I need to even explain this issue it’s March 2023!!
Please @Shopify I pray you read this and understand this glitch/issue on your platform. My screen recording outlines this issue in clear detail.