|Wed Apr 28 2021 10:39:29|
Seller Baffled by How Etsy Handled Sales Tax in Issuing Refund
A buyer on Etsy contacted me and asked me if he could return an item for a refund as he no longer needed it. I stated that this would be fine. The buyer returned the item. I processed the refund for the sales prices of the item minus the outbound and return shipping.
When I clicked to proceed, I got a new amount which was the item amount that I processed, but now with the tax that Etsy collected and a message that this was the amount that would be charged to my credit card. To make the refund go through I had no choice but to accept this.
Since Etsy collects the tax, and remits the tax, and the taxed amount was never a part of my profit, I am wondering why Etsy would charge me for the tax as part of the refund. I messaged Etsy but first received a generic response and the follow-up was bot-like options for self-service.
None of those options were of help to me and as of today no one in Etsy customer service has actually addressed the actual problem or explained to me why I was debited for the original tax that Etsy collected. To me it sounds like Etsy keeps the tax, but it is obvious that I refunded the buyer for the tax that he paid.
Perhaps another seller can weigh in on what is going on here. Perhaps I will be credited by Etsy. I simply do not know. Since Etsy collects and remits the tax, I do not understand why I would be debited for the tax when I process a refund.
I am also a bit disappointed that Etsy Customer Service is not staffed so that sellers' questions or issues are handled properly. Generic responses are useless.
Name withheld for fear of retaliation
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