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June 25, 2026
Question

Does QuickBooks Online Automatic Sales Tax override tax classifications on Refund Receipts created via the API?

  • June 25, 2026
  • 1 reply
  • 40 views

We're trying to determine whether the behavior we're seeing is expected with QuickBooks Online Automatic Sales Tax (AST) or whether something in our integration should be handled differently.

Our workflow is:

Shopify → Cin7 Core → QuickBooks Online

Here's what we're seeing:

  • Customer purchases through Shopify.
  • The sale syncs through Cin7 Core into QuickBooks Online.
  • The original Invoice has the expected tax classification.
  • Later, the order is refunded.
  • The refund syncs to QuickBooks Online as a Refund Receipt.

The refund amount is correct.

The sales tax amount is also correct.

The tax percentage matches the original sale.

However, the Refund Receipt is assigned "Automated based on location" instead of the original tax rule used on the sale.

Because of this, the accounting totals are correct, but the refund is classified under a different tax bucket than the original transaction, which affects our tax reporting and reconciliation.

Cin7 has explained that the tax amounts are correct and suggested this behavior is related to QuickBooks Automatic Sales Tax. We're trying to understand whether this is expected behavior within QuickBooks.

Our questions are:

  1. Is it expected that Refund Receipts created through the QuickBooks Online API are classified as "Automated based on location" when Automatic Sales Tax is enabled, even if the originating transaction used a different tax rule?
  2. If a third-party application includes the original tax reference (for example, TaxCodeRef, TxnTaxDetail, or another tax-related field) when creating a Refund Receipt, will QuickBooks preserve that tax classification, or will Automatic Sales Tax replace it?
  3. If QuickBooks determines the tax classification, is there any supported way for third-party integrations to preserve the original tax rule from the sale on the corresponding Refund Receipt?

We're not trying to determine whether this is a Cin7 issue or a QuickBooks issue. We're simply trying to understand how QuickBooks Online Automatic Sales Tax is designed to behave so we know whether what we're seeing is expected or whether there's an integration issue that should be investigated.

Any guidance from someone familiar with the QuickBooks Online API or Automatic Sales Tax would be greatly appreciated.

1 reply

Moderator
June 25, 2026

Hey there, ​@AccountingERP

 

We appreciate you coming to the QuickBooks Community with your question about tax classifications on refund receipts. 

 

Since we are working with 3rd parties and API within this issue, we recommend getting in touch with our Developers. They will review this problem with you and see what would be best moving forward. 

 

Use the link below to reach our Developers site, and then click Support.

 

Intuit Developers

 

Please keep us updated and feel free to come back if you have any other questions. I’m only a post away if you need me again. Have a great day!