Add your tax-exempt arbitrary refunds

Taxability drivers represent parts of your business that affect tax outcomes, such as arbitrary refunds. An arbitrary refund occurs when your business refunds an amount that differs from the original purchase price. This typically happens when you manually change the refund amount in your Shopify admin.

During an arbitrary refund, the Vertex for Shopify integration sends the refund_discrepancy product code for the line item. This product code identifies the arbitrary refund transaction. However, the product code alone doesn't mean anything for tax calculation. To apply tax exemptions, you must add the taxability driver to set default tax rules and rates based on your taxability selection.

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Note:

This feature applies to a limited audience. It doesn't change your existing functionality, unless you add the taxability driver to a taxability category.

Add the taxability driver

To add the taxability driver for the arbitrary refund tax exemption, follow these steps:

1. In O Series, select My Enterprise > Taxability Driver Management > Taxability Drivers.
2. In the Business Event field, select Supplies from the dropdown list.
3. Click Add.
4. Enter all applicable information, noting all required fields.
5. Click Save.