To ensure an exempt customer is not taxed, enable exemptions in WooCommerce using the TaxCloud for WooCommerce plugin.

How Exemptions Work

Tax-exempt customers must have exemption certificates in TaxCloud for auditing purposes. When exemptions are allowed (see Exemption Modes below), the customer can create an exemption certificate from WooCommerce and select it for the transaction. The TaxCloud for WooCommerce automatically creates that certificate in TaxCloud, if needed.

Exemption Modes

The integration supports three different modes for exempt customers:

Mode	Behavior	Use If	Customer Login Required
Exemptions Disabled	Customers cannot add or select exemption certificates at checkout.	You don't sell to exempt customers.	No
Exemptions Allowed by User Role	Customers that are assigned a specific role are allowed to add and select exemption certificates at checkout.	You sell to exempt customers and would like to vet their exempt status before allowing them to submit exemption certificates and exempt transactions.	Yes
Exemptions Allowed for All Customers	Any customer that is logged in is allowed to add and select exemption certificates at checkout.	You sell to exempt customers and want to allow them to self-report their exempt status.	Yes

Customer Experience

When exemptions are allowed, the customer has the ability to create a new exemption certificate or select an existing certificate at checkout.

Creating an Exemption Certificate at Checkout

To create an exemption certificate, the customer must be logged in and provide the following information:

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

If the customer selects Add a new certificate, they can enter the exemption details. When the customer places the order, the certificate is created in TaxCloud and the transaction is treated as exempt.

Once the order is placed, TaxCloud generates an exemption certificate.

• The exemption certificate is stored in the customer's TaxCloud record for future transactions.
• These certificates can be reviewed or deleted in TaxCloud.

Selecting An Existing Exemption Certificate at Checkout

If one or more exemption certificates for the customer already exist in TaxCloud, the customer can select an existing certificate at checkout.

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

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 TaxCloud for WooCommerce.

   

Step 2: Disable Exemptions

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

Use Case 2: Allow Exemptions by User Role

You might want to use this mode if you sell to exempt customers, and would like to vet their exempt status before allowing them to submit exemption certificates and exempt transactions. After you’ve vetted the customer, add a user role to their account to allow them to submit and use exemption certificates. 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 TaxCloud for WooCommerce.

   

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: Allow Exemptions for All Logged-In Customers

You might want to use this mode if you sell to exempt customers and want to allow them to self-report their exempt status. In this mode, customers who are not pre-approved for exemptions can submit an exemption certificate at checkout. Note that this requires the customer to create an account and log in while shopping.

1. Navigate to Exemptions Settings in WooCommerce:

   1. Navigate to WooCommerce.

   2. Click Settings.

   3. Click the Integration tab.

   4. Select TaxCloud for WooCommerce.

      

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