How to classify your wholesale orders and items sold to tax exempt organizations

If you sell wholesale items or make sales to exempt entities such as government or educational institutions, you need to designate these transactions in your TaxJar account as exempt from your Transactions tab. 

If you want to mark individual transactions, click on the transaction directly and the individual transaction details will appear.

1. At the bottom, you'll see the option to apply an exemption reason: 
   

   

2. Once marked, your account will refresh and confirm the transaction exemption has been applied: 
   

   
   

   💡 If you do not see the option to apply an exempt reason, this is because sales tax was collected.

You can select several transactions in bulk and apply an exemption.

1. In the  Transactions tab of your account, you can click several checkboxes or click into the top left checkbox to select all.
2. Once checked, the option to mark these transactions will appear at the top. Select the reason and multiple transactions will be marked! 
   
   💡 Tip: To unmark transactions, we provide the option "Not exempt" which will undo marking transactions as exempt. 
   

   

Once you've applied these reasons to your transactions, your Reports will reflect accurately on sales that did not collect sales tax. 

We are also working on functionality to allow you to automatically designate sales made to specific customers as exempt for a specific reason, so you don't need to designate them one at a time. Click here to request to be notified when this feature becomes available.

If you need to denote an exempt transaction in a CSV import, here's how.

How to denote exempt transactions in a CSV import

You can denote exempt transactions via CSV upload for marketplace facilitators, wholesale or resale, or government or exempt entities. 

To do this, you will need to enter values in the column with the title ‘exemption_type’ in the SAMPLE CSV file template and include one of the applicable exemption reasons below for each transaction you want to import as an exempt transaction (see image below)

• wholesale (use for items you sold to wholesale customers who are tax-exempt)
• government (use for items you sold to government entities that are tax-exempt)
• marketplace* (use for items you sold through a cart that is automatically collecting for you as a marketplace facilitator)
• non_exempt (if you made a mistake and previously marked an item as exempt, you can update the transaction with this detail in the exemption_type column)

Please see below as an example (  Columns D-M are hidden to capture this screenshot so please be sure to follow our formatting guidelines here.)

*With marketplace transactions, be sure to put the applicable marketplace name in the provider column.

• You can learn more about Marketplace Providers we currently support in this article. 
• If you are working with a Marketplace Provider we don’t yet automatically recognize as marketplace exempt, you can still enter the provider and exemption_type of ‘marketplace’ to properly classify the transaction as exempt in your Reports.

Note: If no exemption_type is provided (blank), and an order transaction already had an exemption_type selected from within the app or via the TaxJar API, the CSV upload will not "override" the original exemption_type. The original exemption_type will be kept in place.