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Sales Tax Refunds on Returns: Rules for Full, Partial, and Restocking Fee Scenarios

  • Retailers are generally required to refund sales tax to customers when items are returned, as the taxable event is reversed.
  • For partial returns, sales tax refunds are calculated proportionally based on the value of the returned items.
  • Restocking fees typically do not reduce the amount of sales tax refunded, as they are considered separate service charges.
  • Retailers must ensure their systems accurately calculate and process sales tax refunds according to state rules.

Source: salestaxsolutions.us

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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