Refunds and credit notes

Issue refunds and credit notes on taxed invoices.

Stripe automatically adjusts your tax liability when you refund or credit invoices that include Stripe Tax calculations.

Refunds Server-side

Stripe Tax adjusts your tax liability in proportion to the refunded amount, splitting the refund between the net amount and tax based on the original tax rate.

Exclusive tax

	Net	Tax (25%)	Total	Refund total	Tax refunded
Invoice total	$100	$25	$125	−$25	−$5
Line item 1	$60	$15	$75	−$15	−$3
Line item 2	$40	$10	$50	−$10	−$2

Inclusive tax

	Net	Tax (20%)	Total	Refund total	Tax refunded
Invoice total	$80	$20	$100	−$20	−$4
Line item 1	$48	$12	$60	−$12	−$2.40
Line item 2	$32	$8	$40	−$8	−$1.60

Create a refund that identifies the PaymentIntent generated by the invoice payment.

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Credit notes Server-side

You can issue Credit Notes to track tax liability decreases and provide records to your customers.

To refund the total amount of an invoice, create a Credit Note that automatically generates a Refund, or create a Refund first, then reference it when you create the Credit Note.

Create a credit note specifying the refund_amount value to automatically generate a Refund.