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Issuing a refund or canceling an order
When preparing an item for shipping, I noticed some damage that I hadn't seen before, and now I need to issue the buyer a refund. First time doing a refund. How is the sales tax handled on this? Buyer paid $15 plus $6 shipping, and $1.73 sales tax. If I just cancel the order, it looks like the Buyer will receive $21 refund. What about the tax Buyer paid?
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inceptions
Mentor2 years agoHi @maverickdogsmom
You need to cancel the transaction using the reason that the item was damaged/out of stock. eBay automatically refunds the buyer's payment. eBay takes the funds you received after fees, and they cover the fee portion and the sales tax.
The cancellation option can be found in the dropdown next to the transaction in your orders list.