---
title: "Calculating Sales Tax on Refund Receipts"
description: "Summary"
canonical_url: "https://support.taxcloud.com/articles/calculating-sales-tax-on-refund-receipts-Z3S9Ctbcbi"
md_url: "https://support.taxcloud.com/articles/calculating-sales-tax-on-refund-receipts-Z3S9Ctbcbi.md"
---
# Calculating Sales Tax on Refund Receipts

## Summary

Refund Receipts are used when you need to refund a customer immediately. This guide explains how to ensure the sales tax is correctly calculated and refunded using the TaxCloud integration.

[Calculating Sales Tax with TaxCloud Integration in QuickBooks Online.mp4 1444x1052](https://support.taxcloud.com/api/attachments.redirect?id=8ce7fce1-4c27-480c-92ea-e40c9d7df31d&start=268&end=306)

## Step-by-Step Instructions


1. **Create a Refund Receipt**: Navigate to **Sales** > **All Sales** > **New Transaction** > **Refund Receipt**.
2. **Enter Refund Details**:
   * Select the **Customer**.
   * Add the products being refunded.
3. **Select Payment Method**: Because this is a refund, you must explicitly select the **Refund From** account (e.g., Cash, Checking) and the **Payment Method**.
4. **Calculate Tax**: Click the **Calculate Tax** button.
5. **Save**: Ensure the transaction is saved with the calculated tax line item included.

## TaxCloud Impact

Similar to Credit Memos, Refund Receipts are captured as **Returns** in TaxCloud. This action processes the tax refund in the system and reduces your overall tax liability for the period.