---
title: "Sales tax added to a refund when it shouldnt be"
slug: "how-to-issue-a-refund-without-adding-sales-tax"
updated: 2026-07-13T23:21:07Z
published: 2026-07-13T23:21:07Z
canonical: "help.servicetitan.com/how-to-issue-a-refund-without-adding-sales-tax"
stale: true
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.servicetitan.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Sales tax added to a refund when it shouldnt be

![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/anvil-wrench.png) Troubleshooting **Role:** Administrator · Bookkeeper · Office Admin**Area:** Pricebook · Refunds · Invoicing · All product versions

## **What you're seeing**

You issue a refund, but ServiceTitan adds sales tax to the refund amount even though the original charge wasn't taxed (or the customer is non-taxable). The refund comes out higher than what the customer originally paid. This can affect a single refund or every refund that uses the same refund task.

- **Where you see it:** the refund or adjustment invoice on the customer's account.
- **Where you fix it:** **Pricebook > Services** (the refund task's **Taxable** setting).

## **Why this happens**

There is 1 common reason.

**Reason 1**

**The task used for refunds is marked as taxable in the Pricebook.** When a taxable task is added to a refund or adjustment invoice, ServiceTitan calculates sales tax on it the same way it would for any taxable line item.

## **How to fix it**

Run these steps in order.

> [!NOTE]
> **Note:** You need Pricebook permissions to edit Pricebook services. If you don't have it, contact your administrator.

> [!NOTE]
> **Caution:** Before reprocessing a refund, cancel any earlier attempts for the incorrect amount in the Transaction Gateway. This avoids issuing duplicate refunds to the customer's card.

> [!NOTE]
> **Caution:** Clearing the **Taxable** setting stops tax on future refunds. It does not change refunds or adjustment invoices that were already created — those have to be corrected on the invoice itself (Step 7).

### **1****Clear the Taxable setting on the refund task**

Use this to stop tax on future refunds and correct any refund already created with tax.

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, clear the **Taxable** checkbox.
6. Click **Save**.
7. If a refund or adjustment invoice was already created with tax, remove the labor task from the adjustment invoice (or the refund task from the refund invoice) and re-add it so the balance recalculates without tax.

> [!NOTE]
> **✓ Done ·** New refunds that use this task no longer include sales tax, and the corrected refund total matches the amount the customer originally paid.

## **Still not working?**

Contact ServiceTitan Technical Support at [**go.servicetitan.com/ask**](https://go.servicetitan.com/ask) with:

- The customer name and the affected invoice or refund number.
- The name of the refund task and a screenshot of its **Taxable** setting in Pricebook.
- The expected refund amount and the amount that actually processed.
- Which steps from this article you already tried.

## **Want to learn more?**

[**Invoice tax showing incorrectly or not removable ›**](https://help.servicetitan.com/docs/how-do-i-remove-tax-from-an-invoice) Remove or correct tax on an invoice when it shows incorrectly or won't come off.

[**Refund won't process or the Refund option is missing ›**](https://help.servicetitan.com/docs/how-to-resolve-error-when-issuing-refund-in-servicetitan) Resolve errors or a missing Refund option when issuing a refund.