Set Up Tax Exempt Customers

Tax-exempt subscriptions allow you to exclude a customer from all tax calculations by marking their customer record as exempt. This setting overrides every other tax rule and ensures that none of the customer’s subscriptions are charged tax during billing.

Merchants can mark a subscription as tax exempt by editing the attached customer and setting the tax exempt property to “Yes”. To learn more more about editing customers please see the Customers documentation for more info.

From Advanced Billing, go to Billing > Customers and select the customer you wish to mark as tax exempt. From the Actions drop-down, select Edit. Scroll down to the Invoicing and Taxes section.

If the customer is marked as tax exempt, then all subscriptions for that customer will not include tax charges when billing calculations are performed. This setting will override any other tax setting that is in effect for this subscription.

Edit the customer to be tax exempt