Refunding Sales Tax

Tboissonneault
New Contributor II

We have a new customer that is non-taxable but did not let us know until after we created the invoice and exported it. What is the best way to credit back the sales tax on my customer's invoice? Ideally, it would reflect on my Sales Tax report somehow. 

2 REPLIES 2

DianaK
Contributor

Create an adjustment invoice to te original invoice. Add the same item as a negative which will also give you a negative sales tax. Then add the item as a positive and uncheck the sales tax on that line item. This will even out the item but leave you with a negative sales tax that you can now refund. When you export this adjustment invoice it will update your sales tax reporting.

Thank you!