Refund Transactions

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Overview

Refunding a transaction where sales tax was collected generates a negative tax liability, which can be credited against future sales in the same jurisdiction. The tax credit applied will match the actual tax amount collected and remitted from the original transaction, making it crucial to link the refund to the original sale.

To link the refund to the original transaction, pass the original transaction’s id as the parent_transaction_id.

Refunds can be categorized as either:

• FULL: The entire transaction amount is refunded.
• PARTIAL: Only specific items or amounts are refunded. In this case, the line_item ids for all refunded items must be provided.

Refund transactions appear in the results from both the GET /transactions and GET /transactions/{id} endpoints, alongside ordinary sales transactions. Refunds are identified by their transaction_type field as REFUND.

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Card Chargebacks

In the case of a card chargeback, you should wait until the dispute is resolved. If the dispute settles in favor of the buyer, create a refund transaction to reflect the chargeback and Commenda will adjust the tax liability accordingly.