Taxes 2.0 introduces native tax-exempt customer support. You can now flag specific customers — such as nonprofits, veterans' organizations, or government entities — as tax exempt directly from their customer profile. Once marked, their orders will no longer have tax calculated automatically.
How to mark a customer as tax exempt
In the Business Manager, navigate to the Customers section and open the customer's profile.
Scroll to the Taxes section.
Toggle the customer's tax status to Tax Exempt.
Save the change.
Once saved, any future orders for this customer will be processed without tax — no pricing tier workarounds or manual discount adjustments needed.
Important: Some taxes may still apply
If your account has tax rates configured with "Apply to all customers, including tax-exempt customers" turned on, those specific taxes will still be calculated on a tax-exempt customer's orders. This is by design — certain taxes, like Florida's 2% drycleaning gross receipts tax, are legally required to apply to all customers regardless of their exempt status.
All other standard tax rates will be excluded for tax-exempt customers as expected.
Viewing tax-exempt customers in exports
The Customers export includes a column showing each customer's tax-exempt status (true/false), making it easy to audit your tax-exempt list or pull records for compliance purposes.
FAQs
Does marking a customer as tax exempt affect past orders? No. The change only applies to future orders. Past orders are not recalculated.
Can I mark a customer as tax exempt from the POS or Employee App? Not currently. Tax-exempt status must be set in the Business Manager. Once it's set, it will apply automatically the next time that customer places an order through any channel.
What if an employee takes a walk-in order from a tax-exempt customer before the status has been set? For now, someone with Business Manager access will need to locate the customer profile, mark them as tax-exempt, and adjust the order manually if needed.
Will the customer see their tax-exempt status on receipts or communications? There is no customer-facing indication of tax-exempt status at this time. Orders will simply reflect $0 in applicable taxes.
Can I remove tax-exempt status from a customer? Yes. Go back to the customer's profile, scroll to the Taxes section, and toggle the status back to not tax exempt.