Enabling Exemptions In WooCommerce

To ensure an exempt customer is not taxed, enable exemptions in WooCommerce using the Simple Sales Tax plugin.

Use Case 1: No Exempt Customers

If your store does not have tax-exempt customers, you can disable exemptions entirely to simplify tax compliance.

Step 1: Navigate to Exemptions Settings in WooCommerce

1. Navigate to WooCommerce.
2. Click Settings.
3. Click the Integration tab.
4. Select Simple Sales Tax.

Step 2: Disable Exemptions

1. Scroll to the Exemption Settings section.
2. Set Enable Tax Exemptions? to No.
3. Click Save.

Use Case 2: Exempt Customers by User Group

For businesses that frequently sell to tax-exempt customers, exemptions can be applied based on user roles. Note that this requires the customer to create an account and log in while shopping.

Step 1: Navigate to Exemption Settings in WooCommerce

1. Navigate to WooCommerce.
2. Click Settings.
3. Click the Integration tab.
4. Select Simple Sales Tax.

Step 2: Enable Role-Based Exemptions

1. Scroll to the Exemption Settings section.
2. Set Enable Tax Exemptions? to Yes.
3. Enter your Company Name for exemption records.
4. In Exempt User Roles, select the roles that should automatically have exemptions applied.
5. If needed, set Restrict to Exempt Roles to Yes to limit exemptions to designated users. Note that this will prevent customers from adding their own exemptions at checkout (Use Case 3).
6. Click Save.

Step 3: Apply An Exempt Customer Role to a User

1. Navigate to the Users tab from the left sidebar in the WordPress Admin Console.
2. Check the box for the Username you wish to update.
3. Select the Change role to.. drop-down and choose one of the Exempt User Roles from above.
4. Click the Change button

The customer's new role will be reflected on the Users page, and the user will now appear under the Exempt Customer section.

Use Case 3: Add Exemption at Checkout

Customers who are not pre-approved for exemptions can submit an exemption certificate at checkout. During checkout, the customer must be logged in, select the option to add an exemption certificate, and provide the following information:

• Exempt State
• Tax ID
• State Issued
• Business Type
• Reason for Exemption

When the customer checks out, their exemption certificate is automatically added to TaxCloud and applied to the transaction.

Allow Customers to Add Exemptions

1. Navigate to Exemptions Settings in WooCommerce:

   1. Navigate to WooCommerce.
   2. Click Settings.
   3. Click the Integration tab.

   4. Select Simple Sales Tax.

      
      
2. Set 'Restrict to Exempt Roles' to 'No'.

Exemption Certificates in Taxcloud

1. Once the order is placed, TaxCloud generates an exemption certificate.
2. The exemption certificate is stored in the customer's TaxCloud record for future transactions.
3. These certificates can be reviewed or deleted under settings > exemption certificates.

How TaxCloud Maps Exemption Data:

When the exemption is created in TaxCloud, the following mappings occur:

• Automatically Populated by TaxCloud:
  • WooCommerce login ID → Customer ID
  • WooCommerce store name → Store Name
  • WooCommerce store URL → Store URL
  • Billing address → Contact Information
• Manual customer input:
  • Exempt State
  • Tax ID
  • State Issued
  • Business Type
  • Reason for Exemption