The taxability status can be adjusted for a customer or an order. You can adjust a tax status for an individual order or set it at the customer level for all estimates and orders created after the change.

This article will cover the following topics:


NOTE:  Tax exemption is handled using the Tax Status function, and not by Sales Tax groups. Using Sales Tax groups for this can lead to undesirable results in your financial reporting.


Setting a Customer's Tax Exemption

  1. Navigate to the customer you want to change.
  2. Click on the Settings tab. The first setting on this tab will be the Tax Exempt setting.
  3. Click the radio button labeled Yes, and set the information as necessary in the Set Tax Exempt Info window. Click Update Tax when you are finished.

    NOTE:  This option will make any new estimates or orders created for this customer tax exempt. It will NOT affect existing estimates or orders.

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    Tax%20Exempt%202.png



  4. If you need to change any of the information you entered, click the update link.  
                                                                                                                                                                                                                        Tax%20Exempt%203.png


Setting an Estimate/Order Tax Status

  1. Navigate to the Estimate or Order you want to change.
  2. On the Order View page, click on Tax in the Order Totals block on the left side.

    Order%20Tax%20Exempt%201.png



  3. On the Order Tax Information window, select the radio button labeled Yes for Make Order Tax Exempt. Once this is selected, a field will display to allow you to enter in a Tax ID number. If the customer has been set to Tax Exempt after this order was created, the information for the customer will automatically populate. Click Update when done.

    NOTE:  This will ONLY affect this order.

    Order%20Tax%20Exempt%202.png

NOTE:  If the customer was not set as tax exempt at the time the order was created, but is later set as tax exempt, this order will still show No for the Customer Tax Exempt status, because that was the status at the time this order was created. It can be marked as exempt by using the steps outlined earlier.


Changing the Tax Status on a Completed Order

If you need to change the status on an order that is already marked as Completed or Closed, you will need to follow the steps outlined in this article Editing a Completed or Closed Order and then follow the steps outlined in the previous section.