Partially Refunded Orders

  • Tad

    (@tatifox)


    7 years ago

    Greetings,

    My Nexus state is CA, I know that TaxJar only looks into completed and refunded orders for tax purpose, but what about Partially Refunded Orders?

    Lets say when I want to refund an order, I refund the amount after deducting the original shipping cost + return label cost.

    Let’s say I have a scenario like this:

    $49.95(product price) + $4.25(tax) + $5.75(shipping) = $59.95(total)

    When I want to refund this order I have to deduct shipping cost ($5.75) plus return shipping label ($5.75) so overall I have to deduct $11.50 from total price and I will refund the rest ($48.45).

    But when doing so WooCommerce does not mark this order as a refunded order, it is Partially Refunded Orders, so WooCommerce marks it as completed order.

    Question is, How do you determine tax for orders like this after Partially Refunded Orders for California?

    I want to know if $11.50 is taxable or not because that price goes straight for shipping costs. and is is flat rate charge because originally I pay $2.7 for shipping but I charge flat rate for $5.75

Viewing 1 replies (of 1 total)
  • Plugin Contributor fastdivision

    (@fastdivision)

    Hi Tad,

    TaxJar will import all refunds (full or partial) for each individual order if it’s in a completed or refunded status, so we’ll pick up the partial refund and deduct $48.45 from the order total for a completed order. The remaining order amount would be $11.50.

    In our expected sales tax reports, the shipping amount of $5.75 would be considered exempt from tax since shipping is not taxable in CA. If the return label is not included in the shipping amount and it’s a separate line item in the order, we’d consider it taxable.

    If you need to fully exempt the return shipping label from sales tax, please reach out to our support team for additional help. Thank you!

Viewing 1 replies (of 1 total)
  • The topic ‘Partially Refunded Orders’ is closed to new replies.