I see a lot of old topics about tax exempt status customers. Is Shopify working on a solution to the issue of tax exempt customers? We've already accepted that the in-store reports are all off because of refunded sales tax and we use external tools for all reporting now. But customers have started to complain so we have to find a solution soon.
I've looked over the tricks for getting around sales tax but none of the ones I've seen discussed here are plausible for our use cases. Is there any chance that something will be added to Shopify to deal with this officially?
I just want to start out by saying that I do not have an active store to completely confirm this but I believe it will work as an interim solution for which you are describing. If someone with a functioning store could try this and confirm it would be appreciated. I have outlined the steps below.
1.Go to your "Customers" from the admin page.
2."Filter Customers" and type in a a string of text you can use that will identify the Tax Exempt related users.
If you have multiple tax exempt customers from different locations that have different tax rates, perhaps something in the format of TaxExempt-Province_Country[TaxRate%] such as TaxExempt-NB_Canada15%Make the filter meaningful, descriptive, and unique so that you can apply it as your filter and discount code which will make it much easier for tracking.
Ensure to copy the text you use to filter to your clipboard. [ CTRL + C ]
3. Save the search [ located to the right of the search field ] as a new search and past the text you just copied to the "Name of New Saved Search" and select save.
4.Go to "All Customers", the first filter on this page, and select the customer to include in the filter.
5.Paste the same text used to create the filter into the "Tags" and save it.
6.Now you can go to you Discounts, add a new discount with unlimited use for use by "Customers in Group".
- The discount line would look like this...
- Discount type: [%discount] + [taxrate] [off for] ["Customer in group"] + [NameOfFilter]
- screenshot attached
From an accounting standpoint, the taxes collected on the invoice should balance and therefore only require an adjusting entry in whatever system you use at the time of remittance. This will also require you provide the discount to the tax exempt individuals for each respective filter.
Note: This response can be credited in part to a similar topic on discounts located at https://ecommerce.shopify.com/c/shopify-discussion/t/how-to-create-a-customer-group-167894 provided by Jason
People have been asking for the ability to exempt their wholesale customers since, what, 2008? And this question was posted 7 months ago with no response by Shopify.
I really don't understand why Shopify cannot include user groups in their software (and why they continually ignore this question). Wholesale customers should be able to create an account and have their status set to tax exempt.
Seriously, Shopify, why are you ignoring this issue that is very important to a lot of your customers. And please, not another $20 to $40 monthly fee for yet another app to make up for what your software lacks.
And no, refunding the customer the sales tax is not a good option. This would make the store's tax reporting worthless.
I agree with the group. I'm absolutely annoyed that shopify has been unable to answer my questions regarding sales tax exemptions. Luckily, I haven't launched my site yet and noticed the issue during some test purchases. I can only imagine the frustration of those who have live sites or unhappy customers.
I'm really not happy with the "guru" inability to answer my questions. I think I may have to seek another ecommerce web host. Ugh!
I echo the above. This feature should be added to the core product. As far as I am aware, there are no apps that truly solve this issue either. Short of setting up a second set of products.... and then locking access to those products from non-resale customers. But then you would have inventory issues, right?. To further muddle the issue... we want / need the ability for the customer to override the Tax Exempt option (only for approved resale customers). Not all of their purchases should be exempt (mixed use facilities).
To be clear: in our case the feature should be the ability to flag customers as Tax Exempt (not just the products). And specifically, we would like the customer to have the ability to override the exemption and incur the taxes as well during the checkout process.