How to Issue a Refund Without Adding Sales Tax

Problem

When issuing a refund, sales tax is added to the amount even though the original amount did not include tax.

Solution

This happens because the refund task in the pricebook is marked as taxable.

1. Go to the navigation bar and click Pricebook.

2. In the side menu, click Services.

3. Search for the task you use for refunds.

4. Click the More icon for that task and select View/Edit Service.

5. In the Details tab, make sure the Taxable option is clear.

6. When finished, click Save.

7. If there are adjustment invoices, remove the labor task from the adjustment invoice or the refund task from the refund invoice to correct the balance on the invoice.

Note: When processing the refund through ServiceTitan, cancel any previous attempts for the incorrect amount through the Transaction Gateway to avoid issuing multiple refunds to the customer's card.