Does TaxJar support multi-usage customer exemptions?

Yes, when using our SmartCalcs API or any integrations that support customer exemptions (WooCommerce & Magento), with some additional work you can set up your customer exemption settings to support both of the following scenarios:

  1. Customer A purchases product XYZ and is exempt in the state based on how they use the product.
  2. Customer A purchases product XYZ and is taxable in the state based on how they use the product.

Using the steps provided in the links above for the respective carts,  you can set up two different customer IDs/groups/users for the customer; one for when the customer is exempt in a state and one for when the customer is taxable in the same state.

  • For Scenario 1, you would simply leverage the exempt customer ID/group/user to support the correct exempt tax decision.
  • For Scenario 2 when the product is taxable, you would associate the order with the customer ID/group/user that has no state-level exemption so that the product is treated as taxable.

Please note that while these settings will allow us to appropriately tax (or not tax) the order, if the customer is exempt you will still need to manually mark the order as exempt in TaxJar in order for the Expected Sales Tax Due Report (and AutoFile, if enrolled) to recognize these orders as Exemptions.

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

We also offer Customer Exemption Certificate storage for our TaxJar Plus subscribers, and we have more information on this feature here!

Did this answer your question? Thanks for the feedback There was a problem submitting your feedback. Please try again later.