Table of content
How to mark customers as tax exempt
To exempt a customer from paying taxes in your store, you should mark them as non-taxable in your store's admin by following the steps below:
- From your store's admin, go to My Sales → Customers.
- Find the customer on the list by name or email and click the pencil icon to edit the customer’s profile:
Note:
If a customer doesn't have a profile in your store yet, they can sign up themselves or you can import their profile data. - Enable Tax exempt and save the changes:
That’s it. Now the customer is marked as tax exempt and, after logging into their customer account in your store, they will pay no taxes when buying from you.
The tax exempt status may offer complete relief from taxes, reduced tax rates, or exemptions for specific categories of goods. Presently, the store only permits setting a 0% tax rate for non-taxable customers, which is automatically applied to all products in the store.
A customer marked as tax exempt still sees taxes at checkout
To receive a 0% tax rate, non-taxable buyers must sign in to your store before proceeding to checkout and placing an order. Otherwise, the standard taxation rules configured in the store will be applied.
Such customers should be advised to log in before purchase using the correct email. You as the store owner can check this email in your store's admin, My Sales → Customers.
Note:
If you have numerous tax-exempt customers, it's advisable to provide them with instructions (for example, on a FAQ page) regarding how to create an account and contact you about tax-exempt purchases in your store. This helps streamline the process and ensures smooth transactions for tax-exempt buyers.