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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. Meanwhile, 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.
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.
