How to handle tax exempt customers in Ecwid

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Some customers, like wholesalers and nonprofit organisations, can be exempt from taxes. Ecwid allows to mark such buyers as non-taxable, so they can check out on your store without having tax applied to their order. For instructions on setting up taxes in Ecwid, please refer to this article: Taxes

How to mark customers as tax exempt

In order to exempt a customer from paying taxes in your store, you should mark him as non-taxable in your Ecwid control panel. How to set it up:

  1. Go to the control panel → My Sales → Customers page;
  2. Find the customer in the list by name or email and click on the pencil icon to edit the customer’s profile;
  3. Enable tax exempt and don’t forget to save the changes.

That’s it. Now the customer is marked as tax exempt and they are paying no taxes buying goods in your store. You can always check this status in the Tax exempt column at the Customers page.

FAQ

I marked the customer as tax exempt, but he still sees taxes at checkout

In order to get a 0% tax rate, non-taxable buyers have to sign in at checkout before placing an order. Otherwise, the standard taxation rules configured in the store will be applied.

Such customers should be advised to log in before purchase using the correct email. You as the store owner can check this email in the control panel → My Sales → Customers page.

Can I set reduced rates or tax on only a portion of items?

Tax exempt status may provide not only complete relief from taxes, but also reduced tax rates, or tax exempt on only a certain category of goods. Currently, Ecwid allows setting only a 0% tax rate for non-taxable customers that is automatically applied to all products in the store. Unfortunately, it is not yet possible to specify partial tax exemption or to limit it by products / categories, but we are definitely going to add this feature in the future.

We would be happy to hear your thoughts on this. To share your ideas regarding partial tax exemption please email us at support@ecwid.com — we will consider all suggestions for future improvements.

 

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