refunding tax

Anonymous
Not applicable

Hello everyone, I have a customer that wants a refund. He wants purchase amount, shipping and taxes that he paid. No problem refunding purchase price and shipping but I do not see where I can refund taxes. Does paypal refund tax automatically once a refund has been issued? Thank you.

View Entire Topic

You didn't mention why the buyer wants a refund and that does make a difference on how it is handled. But as others mentioned, when a refund is issued on ebay either through a cancellation, item not received or return claim, the tax will automatically be refunded.  If you do a refund through Paypal, it has to be handled a little differently.