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Once the tax components have been set up, you can configure them for the customer as well. To ensure a customer is charged tax, two fields must be completed, either on the Customer Card or on the Ship to Address card. Here are both options:
Customer Card
- Click the
icon, enter Customers, and select the relevant link. - In the Invoicing FastTab, assign a Tax Area Code to the customer. The Tax Area Code reflects the tax that would be charged to this customer if you sold to the address in the Address & Contact FastTab on the Customer Card.
- Turn on the Tax Liable toggle switch.
Configure tax exemptions
In the U.S., tax exemptions apply to certain customers (for example nonprofits, resellers) who hold exemption certificates. In Canada, tax exemptions apply to specific goods and services that are either exempt or zero-rated.
For tax-exempt customers, turn off the Tax Liable toggle switch to exclude them from taxation. For customers holding an exemption certificate, you can also record the certificate number in the Tax Exemption No. field on the Customer Card.
Additional tax identification fields
The Customer Card also has fields for tax identification and reporting. Fill them in as required for your country.
| Field | Description |
|---|---|
| Tax Identification Type | The tax identification type for the customer, used for tax reporting. The type depends on whether the customer is a company or a person. |
| RFC No. | The federal registration number for taxpayers (Mexico). |
| CURP No. | The unique fiscal card identification number (Mexico). It must contain 18 digits. |
| State Inscription | The tax ID number that state tax authorities assign to every person or corporation. |
| State / ZIP Code | Replaces the County field on the address. Enter the state or province, or ZIP code according to your localization. |
Ship-to Address card
In some cases, the customer is not taxable except when an item is being shipped to a certain location. In that instance, you would set the Tax Liable and Tax Area Code fields on the Ship-to Address card.
- From the Customer Card, click the Customer action, and then click Ship-to Addresses. You might have multiple ship-to locations listed.
- Click the desired Ship to Code to open the card. On the Ship-to Address page, fill in the fields Tax Area Code and Tax Liable.
