Call (844) NO-DISPUTESResponse Template for "Sales Tax/VAT Dispute"
Chargeback Response
Dear Recipient,
We are responding to the sales tax/VAT dispute filed against our company, Merchant Name, regarding the transaction processed on Transaction Date for Transaction Amount under cardholder Customer Name.
Transaction Details:
- Order Number: Order Number
- Transaction Date: Transaction Date
- Total Amount Charged: Transaction Amount
- Tax Amount: Tax Amount Charged
- Tax Rate Applied: Tax Rate Percentage%
- Billing Location: Customer Billing Address/Jurisdiction
Tax Compliance Statement:
The sales tax/VAT amount of Tax Amount Charged was correctly calculated and applied based on the Tax Type requirements for Tax Jurisdiction. Our tax calculation was performed Calculation Method.
We are in full compliance with all applicable tax laws and regulations. The tax rate of Tax Rate Percentage% applied to this transaction is the current rate mandated by Relevant Tax Authority for Transaction Type in the specified jurisdiction. Additional Tax Compliance Details (Optional)
Supporting Documentation:
We are providing the following evidence to support the validity of the tax charge:
- Copy of the original invoice showing itemized tax
- Tax rate verification from Tax Authority or Source
- Proof of our business tax registration (Tax ID: Business Tax Registration Number)
- Customer's billing address confirming tax jurisdiction
Additional Supporting Documents (Optional)
Customer Disclosure:
The customer was clearly informed of all applicable taxes Disclosure Method. The tax amount was displayed separately and transparently before the transaction was authorized. Additional Disclosure Information (Optional)
Based on the evidence provided, we respectfully request that this chargeback be reversed. The tax charge was legitimate, properly calculated, clearly disclosed, and in full compliance with applicable tax laws.
Should you require any additional information or documentation, please contact us at Contact Email or Contact Phone Number.
Sincerely,
Your Name
Your Title
Merchant Name
Tax-related chargebacks cost merchants billions of dollars every year. International sales trigger dispute rates 3x higher than domestic sales. Customers who file these chargebacks are saying that you charged them too much tax or calculated it incorrectly. Tax calculations get really tricky with different laws across state lines – when shipping a product from California to New York, it means that you’ll follow very different laws than if you sent the same item to Oregon, a state that doesn’t even have sales tax.
When you lose these disputes, it starts a chain reaction of hassles that only gets worse. First, you lose the revenue from the sale, and that is bad enough. But then you’re also stuck covering the tax money you already sent to the government. Tax agencies won’t return that cash just because a customer disputed the charge with their card company. Keep losing these cases, and tax authorities might start asking whether you understand what you’re doing and choose to audit you. Your payment processor may think that you can’t price products correctly, leading to higher fees or limits on your account.
A solid template for tax disputes makes sure you always have the right paperwork, and it walks you through how to show that you calculated the taxes correctly, told the customer about them up front, and were legally obliged to charge them in the first place. Templates also keep everyone on your team on the same page – whether your accountant, your customer-service rep, or you as the owner handles the dispute, everyone sends the same thorough response. This consistency matters during merchant account reviews, when they check that you deal with tax matters the right way.
This particular template was built specifically for sales tax and VAT disputes, with sections that are ready for items like tax registration numbers, checking which jurisdiction applies, and proving how you disclosed the taxes to customers. Typical chargeback templates don’t work for tax disputes because they’re missing the sections that are needed to show how you calculated the taxes and prove that you follow the laws set by local tax authorities – this evidence can make or break these cases.