You can add an exemption certificate via API or manually (depending on your platform type, manually is most common). TaxCloud does not verify the exemption certificate details nor do we manage the certificates for expiration.

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To add an exemption certificate manually (most common)

There are two parts to adding an exemption certificate manually:

1. Collect your customer's information and certificate details.
2. Enter that information into the Exemption Certificates wizard in TaxCloud.

Gather required information

Have your customer's exemption certificate, business contact information, business ID, and state license numbers (for all states where the exemption certificate will be used).

Add the exemption certificate in TaxCloud

The Exemption Certificates registry enables you to monitor active tax exemptions, review compliance details, and access certificate IDs.

The dashboard displays existing certificates in a central grid with columns such as Created, Certificate ID, Customer ID, States, Single Use, and Store Name.

You can filter them using the search bar, use the navigation controls at the bottom to scroll through multiple records and check individual profiles, or refresh the list using the refresh icon in the top right.

Steps

1. Sign into your TaxCloud account.
2. From the main menu, navigate to Settings > Exemption Certificates.
3. Click the + Add button at the top right corner to start creating a new certificate.
4. In the Select Your Connection window, choose the appropriate company/connection from the dropdown menu and click Next.
5. On the Customer Contact Information page, fill in all required fields, including Customer ID, Title (e.g., Purchaser), First Name, Last Name, and the customer's full billing or business address. Click Next to proceed.
6. On the Customer Business Information screen, select the State Incorporated and the Business Type from their dropdown menus. Choose the corresponding tax identifier type (e.g., Federal Employer Identification or State Issued ID) and enter the Tax Number and click Next.
7. In the Exemption Certificate Information section, provide the Created Date using the calendar widget, a unique Certificate ID (if required), and select the Certificate Reason (such as Resale or State/Local Government Name) from the dropdown list. Click Next.
8. On the Add State Exemptions page, select each relevant state from the Add a State search dropdown, enter the Reason for Exemption, and provide the state-specific ID number if required. Click Next to continue.
9. Carefully review all the details on the Review and Submit Certificate page. Verify the purchaser's name, business address, tax ID details, and selected exemption reasons. If everything is correct, click Submit.
10. A Complete message will be displayed, confirming that the certificate has been successfully created, along with its unique TaxCloud Certificate ID. Copy the generated alphanumeric Certificate ID for your billing system records and click Done to return to the main Exemption Certificates page.
11. Once the exemption certificate has been added in TaxCloud, our system will generate a TaxCloud exemption Certificate ID. Depending on your platform type, you may have to add this Certificate ID to your customer's profile to ensure the sales tax is voided for that customer's purchase. For example, in Shopify, follow the process outlined here under Set up tax exempt customers.

Viewing and Organizing Exemption Certificates

By regularly reviewing the Exemption Certificates records table, you can easily track customer exemptions, verify active tax-exempt statuses across multiple states, and ensure comprehensive compliance.

The central panel displays a list of all existing exemption certificates. Key details include:

• Created: The timestamp when the certificate record was added.
• Certificate ID: The unique alphanumeric code generated for the certificate.

• Customer ID: The unique internal identification number linked to the specific customer profile.
• States: The list of state jurisdictions where the tax exemption is valid.
• Single Use: A boolean indicator (true or false) specifying whether the certificate applies to a single transaction or serves as a blanket certificate for recurring purchases.
• Store Name: The specific digital storefront environment (e.g., Production) where the certificate is applied.

Use the search input box at the top of the table to filter records by specific Customer ID, Certificate ID, or associated metadata.

Adding the certificate via API

The customer has to be signed in to their profile on your website for checkout and will be presented with a checkbox option to provide the exempt cert details.

Once the certificate details are added, TaxCloud generates a Certificate ID which is included in the lookup API call to void the sales tax for the sale.

:::info Refer to TaxCloud's Developer Documentation. :::

Important Notes About Exemption Certificates in TaxCloud & our functionality

While TaxCloud supports exemption certificate usage, there are a few important limitations to keep in mind:

• Storage: TaxCloud does not store the actual exemption certificate file. As the merchant, you are responsible for keeping a copy of the certificate on record for your tax-exempt customers.
• Expiration & Maintenance: TaxCloud does not track expiration dates or send alerts when a certificate expires. Merchants are responsible for monitoring and maintaining valid, up-to-date certificates.
• Validation: TaxCloud does not validate exemption certificates.

What TaxCloud does provide is a way to capture and store the key details from the certificate. This allows the certificate to be tied to orders so that:

• Exempt transactions are correctly marked in the system,
• The exemption reason can be reported accurately on state filings (if required), and
• Depending on your integration, the TaxCloud Certificate ID may also need to be added to the customer's profile in your e-commerce platform or ERP. This ensures that when your platform communicates with TaxCloud, the certificate ID is recognized and the order is returned as tax-exempt (e.g., in BigCommerce).

At this time, TaxCloud does not offer a full exemption certificate management feature. However, this is an enhancement we are actively considering for the future.