This article explains what a seller should do if the buyer requests a refund of the Sales Tax: when the tax can be refunded along with the order, and when a tax refund is not possible or must be processed through the marketplace or the state tax authorities.
What to do if a buyer asks for a Sales Tax refund
A buyer may request a refund of Sales Tax in the following cases:
The buyer may think that the seller is not located in Florida, and therefore the Sales Tax was added to the transaction amount by mistake. In this case, you should explain to the buyer that the sale was conducted through a business partner who is located in Florida.
Example in English:
“Hello, I made this sale through my business partner that is registered in FL, USA, therefore Florida Sales tax has to be charged from Florida buyers. Please check your PayPal transaction for more details”.
The buyer may possess a certificate that exempts him from paying Sales Tax — the so-called Sales Tax exemption certificate. In this case you should state that you do not accept such certificates (you have the right to do so).
Example in English:
“Hello, unfortunately, due to my business setup I do not accept sales tax exemption certificates”.
Usually, the above approaches are understood by buyers. In especially contentious cases you can always seek advice from our manager or from the consultants on the Western Bid website.
Frequently Asked Questions when a buyer requests a refund of Sales Tax
Why might a buyer request a refund of Sales Tax?
The buyer may think that the tax was added by mistake because the seller is not located in Florida. In this case, you need to explain that the sale was conducted through a business partner registered in Florida, so Sales Tax must be charged for customers in Florida.
What should you tell a customer if they have a Sales Tax exemption certificate?
It is necessary to politely explain that due to the specifics of your business model, you do not accept Sales Tax exemption certificates. The seller has the right not to accept such certificates.
What should you do if a customer disputes the sales tax?
First, it is worth calmly explaining the situation to the customer. If the customer disagrees or the situation becomes confrontational, you can seek advice from a manager or Western Bid consultants.
