FAQ Knowledge Base

FAQ Home

How do I issue a PayPal refund to my buyer and receive a credit for sales tax and fees?

PayPal Refund (with new PayPal payment platform authorized)
Standard PayPal refunds are issued directly from your own PayPal account.

If you...

  • Finalize the purchase order as Canceled, then refund via PayPal:
    • Sales Tax is refunded to the buyer
    • Seller Service Fee is refunded to the seller
  • Refund via PayPal, then Finalize the purchase order as Canceled:
    • Sales Tax is refunded to the buyer
    • Seller Service Fee is refunded to the seller
  • Issue a partial refund via PayPal, then reduce price and/or shipping on the open purchase order:
    • Sales Tax difference is refunded to the buyer
    • Seller Service Fee difference is refunded to the seller
  • Finalize a purchase order as Sold, then refund via PayPal:
    • Full Refund - see Completed Purchase Order Full Refunds below
    • Partial Refund - see  Completed Purchase Order Partial Refunds below


PayPal Refund (with new PayPal payment platform not yet authorized)
PayPal refunds are issued directly from your own PayPal account.

Open Purchase Order Refunds
   1. Go to Manage Transactions > Open Purchase Orders
   2. Select an order
   3. Click 'Add Order History'
   4. Select 'Money Refunded'    

   Be sure to edit the affected values on the order to ensure that the sales tax, and related fees, are re-calculated.

Completed Purchase Order Full Refunds
   1. Go to Manage Transactions > Completed Orders
   2. Select an order
   3. Click 'Add Refund Details'
   4. Choose 'Full Refund'
   5. Click Submit 

   Your shop account should be credited with the sales tax and/or service fees taken when the purchase order was finalized.

Completed Purchase Order Partial Refunds
   1. Go to Manage Transactions > Completed Orders
   2. Select an order
   3. Click 'Add Refund Details'
   4. Choose 'Partial Refund'
   5. Choose the line item(s) to be refunded and enter the applicable amount to be refunded.
   6. Click Submit

   Your shop account should be credited with a portion of the sales tax and/or service fees taken when the purchase order was finalized.


Note about Sales Tax & Fees:
The Sales Tax collection process is complex and we suggest only issuing refunds to your buyers from orders that have not yet been Finalized. If you issue a refund to your buyer, any Sales Tax must be refunded along with the refund. Refunds issued for orders that are canceled after the refund will have the Sales Tax liability removed from your shop accounting Current Balance page. Partial refunds accurately recorded on purchase orders will have the partial Sales Tax/Fees liability adjusted accordingly.

2020-03-04 7:12 am
Rate this FAQ:

Related Questions

  1. How do I issue a refund to my buyer and receive a credit for sales tax and fees?
  2. When do I report an item Sold?
  3. How do I offer a Layaway Plan?
  4. How do my buyers pay me?
  5. How do I cancel a Purchase Order and place the item back in my shop?
  6. How do I manage the sale of one item from a multiple item listing?
  7. How do customers purchase my items?
  8. How do I set my shop to show credit cards are only accepted through PayPal?
  9. If I use different email addresses for my shop and my PayPal account, how can a buyer pay through my shop with PayPal?
  10. How do I change the Methods of Payment I accept in my shop?
  11. Can I accept online payments that do not go through PayPal?
  12. Are there any countries where buyers cannot use PayPal?
  13. How do I accept credit cards from buyers?
  14. Why is an item that is available for sale in my shop showing as unavailable to some shoppers?
  15. What should I do if my buyer's email address has been removed from Ruby Lane?
  16. How do I combine purchase orders submitted from the same buyer?