---
title: "How to Issue a Refund Without Adding Sales Tax"
slug: "how-to-issue-a-refund-without-adding-sales-tax"
updated: 2026-03-11T20:13:02Z
published: 2026-03-11T20:13:02Z
---

> ## 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.

# 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]
> **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.