Tax exemptions and overrides

Recharge will charge taxes on all applicable orders processed for your store when enabled. There may be times when you're faced with unique tax situations for your products or customers. You can mark products and customers as tax-exempt in Recharge to avoid charging taxes on all orders.

Tax exemptions

You can set certain products and customers as tax-exempt in Recharge to prevent taxes from being charged in specific cases.

Setting a product as tax-exempt

You can set a tax exemption for individual products by turning off the tax setting on the product in Shopify. For stores using the Recharge Checkout on Shopify, be sure to set a tax exemption for auto-renew products along with the original product. 

In addition, for stores using the Recharge Checkout on Shopify, adjust your settings in Recharge as follows:

1. In the merchant portal, select Settings and then Taxes.
2. Ensure that Run a check to see if all products are taxable is checked.

You can set a tax exemption for individual products by using BigCommerce's Manual Tax settings. For detailed instructions, see BigCommerce's guide on Charging Product-Specific Tax Rates with Manual Tax. 

Marking a customer as tax-exempt

You can mark customers as tax-exempt from the Recharge merchant portal.

1. From the Recharge merchant portal, select Customers.
2. Search for and select the customer you want to mark as tax-exempt. 
3. Click Edit customer from the Customer Overview section. 
4. Click the This customer is tax-exempt checkbox. 
5. Click Save. 

Tax overrides

At this time, Recharge does not work with the Shopify tax override feature. If you use tax overrides in Shopify, they will not be reflected in Recharge.

Please contact the Recharge support team with a list of tax rates if you are looking to set a specific tax rate per location. The support team can configure any manual tax overrides per state or country for you.

Recharge also integrates with Avalara to offer more robust tax offerings, such as per-product tax rates.