Order receipt shows a much higher amount after discounted price.

[shopbypia]

Hello. Can anyone offer some help? I'm a new Etsy seller.

I noticed that my recent order receipts show that my customer was charged more after applying the coupon.

For context, I sell digital products.  The item price is $7.00 and I have a 50% sale.

Aside from that, I have other sales, as recommended by the platform, for abandoned carts, thank-you sales, and favorite items for 10%.

The order receipt shows:

Item price $7.00

Shipping is $0.00

Tax is $0.00

Coupon (50% off) = $3.50

Order total $4.20

Can someone please explain how it came up to that and how to fix it?

Highly appreciate the help.

[TBQSC · Accepted solution]

Your items come from CA, so there IS tax being added to orders.  I just put one of your items in my cart and went part way through checkout ... I was charged 30-cents for tax.  You can test this out for yourself by looking at one of your items in incognito mode ... add the item to your cart and go through checkout (use a different zip than yours), but STOP before you have to submit payment ... you will see on the first page (after adding to cart says 0 Tax), but if you go to the next step, it clearly shows tax IS being added.  Hope that helps! 

[CappuccinoLace · Accepted solution]

It's a digital listing therefore Etsy adds relevant tax.

Unfortunately, for some reason, etsy doesn't show the tax under the tax line when it's a digital listing.

3.50 + 20% tax (UK or France VAT for example) = 4.20.

You still receive an address on the order and can see what country the buyer was in.

[NoFrogsAllowed]

Taxes are destination based, so vary by state or country.  Etsy collects and submits the taxes, so you won't receive the extra amount you will just receive the actual sale amount (minus fees, of course).  Check out your payment account.

[shopbypia]

It makes perfect sense to me now. 

Thank you all for your help! Appreciate the effort