How to Add an Exemption Certificate to TaxCloud

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• Add an exemption certificate manually (most common)
• Adding the certificate via API
• Detailed step-by-step wizard flow for adding a certificate in the TaxCloud UI
• Important Notes About Exemption Certificates in TaxCloud & Merchant Responsibilities

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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.

1. Gather required information

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. Add the exemption certificate in TaxCloud

1. Sign into your TaxCloud account.
2. From the main menu, navigate to Settings > Exemption Certificates.
3. Click the + Add (or 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, First Name, Last Name, and the customer's full address. Click Next to proceed.
6. On the Customer Business Information screen, select the State Incorporated and the Business Type from their dropdown menus. Enter the Tax Number and click Next.
7. In the Exemption Certificate Information section, provide the Created Date, a unique Certificate ID (if required), and select the Certificate Reason from the dropdown list. Click Next.
8. On the Add State Exemptions page, select each relevant state and enter the Reason for Exemption. Click Next to continue.
9. Carefully review all the details on the Review and Submit Certificate page. 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. 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 (for example, in BigCommerce or other platforms) to ensure the sales tax is voided for that customer's purchase.
12. 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.