Exemptions, clothing and overrides
Mark customers tax-exempt, set which products are taxed as clothing, and override the rate for one address.
Tax-exempt customers
Schools, churches, nonprofits and resellers are often exempt. Mark them once and their quotes and invoices carry no tax.
- Open the customer and edit them.
- Under More options, in Billing & terms, turn on Tax exempt.
- Enter their Tax exemption ID (from their certificate), then save.
Online store orders from a tax-exempt customer carry no tax either.
Keep a copy of the customer's exemption certificate in their files in case you're audited.
Clothing and other tax classes
Some states tax clothing at a lower rate, or not at all. Each line on a quote, invoice or store order gets a tax class, set by SKUFlow:
| Line | Taxed at |
|---|---|
| An apparel product, and the decoration priced into it | The clothing rate |
| Other products and pricebook items | The rate |
| Shipping | The shipping rate |
| A pricebook item that isn't Taxable, or a product set to Not taxed | No tax |
To change a product's class, open it under Products and set Sales tax to Clothing, Standard or Not taxed. By kind (apparel is clothing) is the default.
Clothing rates only make a difference where a tax rule has a Clothing rate (%). See Add tax rules.
Override the rate for one address
For an address with its own rate, such as one in a special tax district your rules don't cover, set the rate on the address:
- Open the customer's address and edit it.
- Enter the Tax rate override (%). Leave it empty to use your tax rules for the address.
- Save.
Add the County to addresses if your rules use county rates.
Business unit defaults
If you run several business units, each can have a Default tax rate (%), used on its quotes and invoices when nothing more specific applies. See Business units.