How do i credit a customer for incorrectly charging GST to them?

Hi there, 

Charging your customers in the correct amount is essential so that they can feel confident in your business. It's also important for you, so that you can ensure your books reflect the accurate sales. When mistakes happen, you can use the credit toward an invoice, refund the customer, or enter the overpayment as a tip in QuickBooks. I'd be happy to explain how you can give your customer a credit or refund, as well as how to resolve the discrepancy in your account. 

There's a few options to consider when the customer is charged too much on their invoice. You'll have to decide which option fits best with what you're doing with the funds outside of QuickBooks. If you're keeping the funds and placing it towards the customer's next invoice, you'll create a credit. If you're refunding the customer's money right away, you'll record this as a refund.

Regardless of which option you choose, you can follow the steps in this article to get it done: Handle a customer credit or overpayment. 

Once you've decided how to get the funds back to the customer, you'll have to edit your original invoice to reflect the changes to the GST charge. To edit your invoice, you'll have to delete the corresponding payment and re-enter it. To do this, click the Sales tab on the left navigation menu > All Sales > locate your Payment > double click > More > Delete. 

Then, edit your invoice by locating it from your invoice list, then change the tax code to Exempt. Re-record your customer's payment.

That's all there is to it. If you've got any other questions about this, please reach out to our tech support team. 

Have a great weekend.