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Refunding sales tax
Oceanside
Member Posts: 6
I created an invoice in June & charged my client sales tax. They just came back with their sales tax exemption form. The invoice has been paid. How do I refund the sales tax in the system?
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Hey @Oceanside. If they paid the invoice through our processing, you can simply just create a refunded amount by going to Sales > Payments, selecting the corresponding invoice and refunding what was owed to them. If you manually marked the invoice as paid you would simply just create a transaction, categorize it as a 'refund for invoice' and then select the invoice from the drop down list.
Hello. I had this same question. While I can see how your answer takes care of creating a transaction to refund the sales tax, I do not understand how it subtracts from sales tax collected. What am I missing?
Hey @BrushHammer , if you're refunding your customer the amount from the Sales Tax, you can create a refund transaction and assign it to the invoice as stated by JamieD above. You can then go to the invoice and manually remove the Sales Tax that was added which should remove it from your Sales Tax collected but also even out the invoice.