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On Tibia's website, there's the Withdrawal Form under Legal Documents. My question is, what is this form withdrawing or used for?

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Withdrawal form, is form where you withdraw from services bought from Cipsoft GmbH. This can be only done when product was not used and within 14 days after purchase. This is for ‘Tibia coins”, “Premium Time” and “Extra services”.

This is described in here: https://www.tibia.com/support/?subtopic=legaldocuments&page=extendedagreement

4. Right of Withdrawal
You have the right to withdraw from this contract within 14 days from the day of the conclusion of the contract without giving any reason unless the corresponding service has already been used. To exercise the right of withdrawal, you must inform us (CipSoft GmbH, Prüfeninger Straße 20, 93049 Regensburg, Germany, email: payments@cipsoft.com) of your decision to withdraw from this contract by an unequivocal statement (e.g. a letter sent by post or e-mail). You may use the model Withdrawal Form, but it is not obligatory. To meet the withdrawal deadline, it is sufficient for you to send your communication concerning your exercise of the right of withdrawal before the withdrawal period has expired.
If you withdraw from this contract, we shall refund to you all payments received from you, without undue delay and in any event not later than 14 days from the day on which we are informed about your decision to withdraw from this contract.

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