Tax Exemptions

Sales tax rules can be complicated and vary by location. Certain categories of clients, such as government agencies, tribal councils, and NGOs, are exempt from specific taxes, and some digital products might not be taxable. The tax exemption feature allows Partners to accurately bill for products and services, considering the unique nature of each transaction. Exemption rules are automatically applied to sales orders and subscription billing.

Exempting Tax from an Item 
If you have a few digital products or services that are exempt from tax, you can prevent taxes from applying to these individual items. To do so:

  1. Navigate to the Tax Rates page in Partner Center under Administration > Tax Rates, and select Item Exemptions.cefcf1fb-f1c0-444c-ae33-189c5c28367d.png
  2. Click Add Items to add the product or package you want to exempt.9031fd00-e62b-4643-ad98-5f29cb99ccdb.png
  3. Select the tax rates from which the item should be exempted.e6969063-4dfc-44da-85ae-0c7acec2caa8.png
  4. Click Save.

The item will now be exempt from taxation in sales orders and subscriptions.

Exempting a Client Account from Tax
If you’re selling to a tax-exempt client, you can prevent taxes from applying to all products sold to that client. To get started:

  1. Navigate to the Tax Rates page in Partner Center under Administration > Tax Rates, and select Account Exemptions.
  2. Click Add Account to add the client account you want to exempt.
  3. Select the tax rates from which the account should be exempted. Only tax rates applicable to the client’s location will be displayed.
  4. Click Save.1767aeb8-3dcf-4219-bfd9-c3e27f1f5103.png

The account will now be exempt from taxation in sales orders and subscriptions for all products sold.

Learn more about creating and applying tax rates here. 

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