4 ms·

Maybe someone from Stripe is reading the comments and can explain: why do refunds not reduce the reported tax collected? Are we supposed to keep separate record

• yarcob 5y ago
  Presumably because it's hard to do correctly, and Stripe chose to focus on the easier part. For example, I need to report VAT on the 15th of the second following month. If I got a refund after that date, I have already reported that tax, and I need to report a correction. I can't just report a lower tax the next time. If you don't have a lot of refunds, then just paying taxes that you don't owe may be cheaper than handling it correctly (which is a lot of effort). And it may be the safer option -- nobody is going to fine you for paying too much tax.
• deleted 5y ago
  [deleted]
• kmoriarty 5y ago
  Good question! You can create a Credit Note, which will indeed shift the liability and will correctly reference and update the prior legal invoice. If you’re refunding a PaymentIntent however, we won’t shift the liability. Basically, we offer you two ways to move money back to your customer: one that might be a higher lift which ensures your accounting is updated and the liability if shifted, or a much easier way to refund, but you may pay some tax out of pocket.
  • titanomachy 5y ago
    “Higher lift” means “more work” in this context.