Tax exemptions and overrides
When enabled, Recharge will charge taxes on all applicable orders processed for your store. There may be times when you're faced with unique tax situations for either your products or customers. You can mark products and customers as tax-exempt within Recharge to avoid charging taxes on all orders.
- This guide is applicable to merchants using the Recharge Checkout on Shopify.
- Merchants using the Recharge Checkout on BigCommerce should reference BigCommerce's guide on Creating tax-exempt customers using manual tax.
- Tax overrides are not available to merchants using the Shopify Checkout Integration, as listed in the feature status guide.
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.
In addition, adjust your settings in Recharge as follows:
- In the merchant portal, select Settings and then Taxes.
- Ensure that Run a check to see if all products are taxable is checked.
Marking a customer as tax-exempt
Recharge has a feature in beta that will set tax exemptions on a per-customer basis.
Step 1 - Enroll in the beta feature
To enroll in the customer tax exemption open beta, please send a message to the Recharge support team.
Step 2 - Mark the customer as tax-exempt
Once you’re enrolled in the beta, you have the ability to mark individual customers as tax-exempt. You will find a new option on the customer profile page:
- Select Customers in the merchant portal.
- Search and select the customer you want to mark as tax-exempt.
- Click See details next to the Address ID number underneath the customer’s name.
- Scroll down and click Additional Info & Settings.
- Click on the toggle slider in Tax exempt status override.
- Click Confirm in the pop-up. Recharge will process the request and mark the customer as exempt.
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.
