thread HST on Refunds in Payments Troubleshooting

HST on Refunds

Waddell — Sun, 21 Sep 2025 16:53:17 GMT

When I refund a sale that included HST, is the 'taxes collected' total on my Sales Summary report reduced by the HST on that refunded sale?

Re: HST on Refunds

LukeNieuw — Fri, 22 Apr 2022 19:11:42 GMT

Hi @Waddell

Yes, the "taxes collected" is reduced when you process a refund.

Re: HST on Refunds

Waddell — Wed, 27 Apr 2022 12:57:49 GMT

Thanks Luke, but I'm still not sure. The reason I asked is that my 2021 sales summary showed HST collected for a product category that is Tax-exempt (Apples). Being new to Square and busy setting up many categories and products last year, it occasionally happened that we created a product and forgot to mark it tax-exempt. But these were occasional errors and quickly rectified, so I still wondered why the annual Taxes collected for the tax-free Apple category was as high. I dug deeper to investigate: Example: I had an online sale transaction July 15/2021 4:23 pm for $150 + $19.50 HST (incorrectly charged). Receipt #nZRT I refunded that sale July 16 at 10:02am. When I view the Sales Summary report for July 1-15, the total Tax collected is $74.75. When I extend the report timeframe to July 1-16 (after the refund), the total Tax collected is still $74.75. I had no other taxable sales on July 16 so the total Tax on my Dashboard should be $55.25 at that point ($74.75-$19.50) - No? It's not a big deal, but I came across this when using Square reports to calculate HST I need to remit to the government for 2021. Thanks for listening!

Re: HST on Refunds

Tybrushe1 — Mon, 13 Feb 2023 17:23:34 GMT

This just happened where i refunded part of the shipping from an online order and no tax was refunded.
is someone addressing this or how do we have this addressed?

Re: HST on Refunds

_Violet — Wed, 15 Feb 2023 20:41:41 GMT

Hi @Tybrushe1 - I'm sorry to hear that this issue with this Online Order has brought you to the Seller Community! 😥

This does sound off, but it's difficult to pinpoint what may be happening without looking at your account with you. For this type of issue, I suggest that you get in touch with our Support Team via phone or email.

The best way to reach out is by phone because our team can look at your account with you and help you make adjustments in real-time. If you haven't already, please reach out directly by logging into your Square account and heading here.