Taxes not included in the price
For merchants in the EU, taxes are normally included in the product price. This means the price shown on the product page already includes VAT, and the same price is used when Returbo calculates refunds or exchanges.
However, many merchants sell in markets where taxes are not included in the product price, such as the United States or Canada. In these markets, taxes are added during checkout based on the customerās location.
How Returbo handles taxes
If your store sells in markets where taxes are added at checkout, Returbo can still refund the tax amount correctly.
When a refund is processed, Returbo retrieves the tax information from the original Shopify order and includes it in the refund.
This means that:
The product price may not include tax
The tax is refunded together with the item, based on the original order
The correct tax amount depends on the customerās location
What you will see in Returbo
In the Returbo admin panel, the refund amount shown for the item does not display the tax refund separately.
However, the tax is still included in the refund that is sent to Shopify.
To see the full refund amount:
Open the order in Shopify
Go to the refund section of the order
There you will see the total refunded amount, including tax.
Important requirement
For this to work correctly, you must have taxes configured in Shopify for the markets you sell in.
To check this:
Go to Shopify Admin
Click Settings
Select Taxes and Duties
Ensure that taxes are set up for the relevant regions or markets
If taxes are configured correctly in Shopify, Returbo will automatically include the tax when processing refunds.