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.

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. Ensure that the Run a check to see if all products are taxable setting in Settings > Taxes is enabled in your Recharge Dashboard.

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:

1. Select Customers in the Recharge Dashboard.
2. Search for the customer you want to mark as tax-exempt, then drill down into their details by clicking on their name.
3. Click on See details next to the order ID number underneath the customer’s name.
4. Scroll down and click on Additional Info & Settings.
5. Click on the toggle slider in the Tax exempt status override. 
6. Click Confirm on the popup. 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 our support team with a list of tax rates if you are looking to set a specific tax rate per location so that we can configure any manual tax overrides per state or country for you.

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