Sellers are responsible for issuing refunds to buyers, including the tax portion of the payment. If the buyer is refunded and Bonanza collected the sales tax, the payment processor will deduct the sales tax portion of the order from Bonanza and refund it back to the seller's account. If the buyer receives a partial refund, the payment processor will deduct a proportional percentage of the sales tax from Bonanza and refund it back to the seller's account.
For PayPal transactions:
- The prorated tax portion is given back to the seller immediately upon issuing the refund.
- This should appear as a credit to the seller's account labeled as "Partner Commission" under the transaction details.
- Similarly the seller would see Partner Commission as a debit when the original transaction is made to indicate that the sales tax amount was being sent to Bonanza
Learn more about sales tax and Bonanza on the following page: