Some of your customers, such as government agencies, may be exempt from sales tax.
Instead of marking each of their orders as tax-exempt one by one, you can mark the customer as tax-exempt. Every order you create for that customer will then have zero sales tax.
How to mark a customer as tax-exempt
Go to Customers and search for the customer.
Click the customer to open their profile.
Click the edit icon next to the customer's name.
Select the Settings tab.
Turn on the Tax Exempt checkbox.
Click Save.
The customer is now tax-exempt, and sales tax will be zero on every order you create for them.
Keeping a record of their tax-exempt number
If you need to record the customer's tax-exempt number, we recommend adding it to the customer's Internal Notes. Internal notes stay with the customer and are also visible on their orders, so your team can find the number whenever they need it.
Good to know
The tax-exempt setting applies to orders created after you turn it on. Existing orders aren't changed.
You can still mark an individual order as tax-exempt for customers who are only exempt some of the time.