How to add an exemption certificate to TaxCloud

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.

To add an exemption certificate manually (most common):

1. 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).
2. Enter that information into TaxCloud within Settings > Exemption Certificates > +Add (at the top right corner).
3. Once the exemption certificate has been added in TaxCloud, our system will generate a TaxCloud exemption "Certificate ID"
4. Depending on your platform type, you may have to add the Certificate ID to your customer's profile (i.e. in BigCommerce) to ensure the sales tax is voided for that customer's purchase.
   1. In Shopify, follow the process outlined here under, Set up tax exempt customers.

Adding the certificate via API

refer to TaxCloud's Developer Documentation.

• 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.

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.