Tax Over-Collection in Returns and Common Mistakes

If a return shows a negative tax difference, it means you have over-collected taxes on some transactions based on the data available in Galvix.

To identify the affected transactions:

Click the "View Details" button next to the displayed tax difference.
Or, navigate to the "With Tax Difference" tab in the Transactions card on the Return Details page.

Possible reasons and fixes for Tax Over-Collection are:

Mismatched Tax Categories Between Galvix and Your Billing System

If the tax category assigned to a product in Galvix does not match the one in your billing system, it can lead to over-collection.

Open the Transaction Details page and review the Tax Category and Tax Rate applied to the affected line item.
Compare these values with the corresponding tax category and rate in your billing system.
If there’s a mismatch, update the tax category in either Galvix or your billing system to ensure consistency.
- You can check this link to learn more about updating the product tax category in Galvix.
If the correct tax category is not available in Galvix, contact support@galvix.com for assistance.

If the issue persists, continue to the next step.

If a customer is tax-exempt, but the tax was collected, it can result in over-collection.

Verify if the customer has an exemption record in Galvix.
If the exemption exists in Galvix, check if the same exemption is applied in your billing system.
If the exemption is missing in the billing system, add it there to match the exemption data in Galvix.
Go to Settings → Integrations in Galvix, click the 3-dot menu next to your integration, and select Resync to update the latest changes from your billing system to Galvix.
Recheck the tax difference after syncing.

If the issue persists, proceed to the next step.

If a transaction was mistakenly flagged as exempt in Galvix but not in your billing system, it could lead to over-collection.

Check if an exemption was applied to the customer in Galvix.
Cross-check whether the billing system also has the same exemption.
If the exemption is not present in the billing system, disable the exemption in Galvix.
- Navigate to Settings → Integrations, click the 3-dot menu next to the integration, and select Disable.
Recheck the transaction to confirm the correction.

Following these steps will help resolve tax over-collection issues and ensure accurate tax calculations in Galvix.