If you need to apply a tax on certain items, you can do this easily by doing the following:
- Click Settings > Taxes.
- Click Manage Tax Rates.
- On the next screen, click Add new tax.
- Modify the following settings:
- Tax name: for example, a certain region, e.g. the UK.
- Tax applies to subtotal or subtotal and shipping
- Zone defines by choosing Shipping address or Billing address
- You can click Specify rates per zone and enter precise tax rates for each zone.
- To add more rates for each zone, click Add Rate.
- To remove a zone, click on the trash can icon.
- Once you are done customizing taxes, click Enable and Save.
This will now apply a tax only to orders sent to regions you have selected.
Managing tax-exempt customers
Some customers, like wholesalers and nonprofit organizations, can be exempt from taxes. You can mark such buyers as non-taxable. Now they can check out in your store without having tax applied to their order.
To exempt a customer from paying taxes in your store, you should mark them as non-taxable in your store admin.
To mark customers as tax-exempt:
Go to your Online Store dashboard, then click on the My Sales > Customers link.
Find the customer on the list by name or email and click on the pencil icon to edit the customer’s profile:
Enable tax-exempt status from the drop-down menu.
Save the changes.
That’s it. When you mark the customer as tax-exempt, they won’t pay any taxes while buying products in your store.
You can always change this status in the Tax-exempt column on the Customers page.