Mage's Sanctum review for Pabloo Store Credit & Cashback
March 25, 2025
There is a huge problem with the Pabloo store credit app and US State Sales Tax collection. Pabloo utilizes a discount on the POS sales receipt instead of an alternate payment method when applying store credit to a sale. This discount goes against the total ticket price and lowers sales tax collection by the amount of credit applied against the ticket! This means for users not aware of how this works, you are selling taxable goods without collecting sales tax! Store credit is not a tax exempt payment method... For example if you sold a ticket at $1,000.00 in taxable goods, and they had a $500 store credit - at a 10% state tax rate - the total tax collected should be $100.00. Once Pabloo applies the $500 store credit as a discount, the calculated value of the ticket is now $500 and only charges $50 in sales tax. As the owner of the store - You are responsible for the other $50 in uncollected sales tax!!!