What does 'presumed exempt' mean?
If you didn't collect tax on a transaction at the time of the sale, our system will see that the sale is untaxed, but we're not able to see a product tax code or exemption classification from your cart that tells us why the item was not taxed.
When we import an untaxed transaction from your cart, the actual sales tax collected report will assume the sale is exempt and you can see the total of untaxed, unclassified orders listed as "presumed exempt" when you hover over the deductions/exemptions field in your actual state sales tax report.
You can get a closer view of the transactions we consider to be untaxed/presumed exempt if you click the blue 'view transactions' link under the gross total at the upper left hand of your TaxJar state report and filter the transactions by 'no sales tax was collected.'
Does the expected sales tax due report presume my untaxed sales are exempt?
No. The expected sales tax due report will still assume those presumed exempt sales should be taxed unless you have classified those items with a valid product tax code or reason for exemption.
TaxJar users who sell on these supported platforms, or who use the TaxJar API (or a combination of supported carts and our API) may be able to classify exempt sales via the exemptions tab to make sure TaxJar's expected report will view those sales as exempt.
Once you classify your exempt sales, the expected report will no longer assume the sales you classified are fully taxable.
If you have sales from carts other than these carts or on a plan that does not support exemptions, you won't be able to use the exemptions tab.