How to Configure Partial Tax Exemption

JMcDonald
Visitor
1 0 0

California has a partial tax exemption for Agriculture. The partial exemption applies only to the CA state part of the sales tax. Shopify only allows me to enable/disable Collect Tax by customer. It is all or nothing. I need to be able to exclude the CA state tax part for certain customers.

 

Below is an example of a CA order. We need to exclude only the California State Tax (6%) part.

 

Example:

Sacramento County Tax (0.25%)

Westminster City Tax (1%)

Orange County District Tax (0.5%)

Sacramento Co Local Tax (1%)

California State Tax (6%)

Replies 2 (2)

Victoria
Shopify Staff
2221 152 259

Hi there, @JMcDonald.

 

Welcome to the Shopify Community, and thanks for sharing your question.

 

I understand you're specifically looking to exempt California State Tax for certain customers. At this time, this does not look to be a native feature on the platform. 

 

A workaround you can try is using the app DIY Tax Exempt Checkout from the Shopify App Store, which makes the process of claiming tax-exempt customers a simpler process. A secondary option is manually adjusting the invoices for the customers who qualify for the exemption by refunding the particular portion of the state tax after the purchase.

Victoria | Shopify 
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rogerdek
Shopify Partner
1 0 0

As mentioned, Shopify Tax right now doesn't support partial exemptions.

 

But you can look at using Avalara which integrates with Shopify.
https://help.shopify.com/en/manual/taxes/tax-services

I believe Avalara already handles the partial agricultural tax exemption where you need only indicate which of your products are classified as agriculture and it should calculate the right tax amounts for you.


For us, we have to manually add a partial exemption to deal with Regulation 1432. Teleproduction or other postproduction service equipment partial tax exemption.