Some customers — resellers, nonprofits, government buyers — don't pay sales tax. The TaxCloud QuickBooks Plugin reads QuickBooks' built-in customer tax setting and tells TaxCloud when a customer is exempt, so their sales come back at $0 tax automatically. This article covers how to mark a customer exempt and how their exemption certificates are recorded.

Some customers — resellers, nonprofits, government buyers — don't pay sales tax. The TaxCloud QuickBooks Plugin reads QuickBooks' built-in customer tax setting and tells TaxCloud when a customer is exempt, so their sales come back at $0 tax automatically. This article covers how to mark a customer exempt and how their exemption certificates are recorded.

## How customer exemption works

QuickBooks Desktop gives every customer a **Tax Code** with two built-in values:

* **Tax** — the customer pays sales tax.
* **Non** — the customer does not.

The plugin reads this field on every transaction. When a customer is set to **Non**, it sends an exempt flag to TaxCloud, which then:

* Returns **$0 tax** on the sale, and
* Still **records the sale for filing** — most states require you to report exempt sales even though no tax is due.

Set a customer to **Non** once, and every future transaction for them is zeroed out automatically.

## Mark a customer exempt


1. Go to **Customers → Customer Center**.
2. Double-click the customer to open their record.
3. Open the **Sales Tax Settings** tab.
4. Set **Tax Code** to **Non**.
5. (Optional) Enter their **Resale Number** for your own records. The plugin doesn't send this to TaxCloud, but it's useful at audit time.
6. Click **OK**.

 ![Customer record Sales Tax Settings tab with Tax Code set to Non](https://support.taxcloud.com/api/attachments.redirect?id=baf64043-2a9f-4189-98cd-e5bc45e05b85 " =1626x1362")


:::info
**Already have open invoices for this customer?** Invoices saved while they were set to **Tax** keep their original tax. Open each one and click **Save** again — the plugin recalculates against the new exempt setting and removes the tax line.

:::

## What the exempt setting covers

The **Non** flag is all-or-nothing: it applies to every transaction the plugin syncs (invoices, sales receipts, credit memos) and zeroes out every line. It does **not** handle:

* **Per-state exemption** — a reseller exempt in California but not New York.
* **Per-reason exemption** — resale vs. nonprofit vs. government.
* **Per-product exemption** — exempt on some items but not others (that's a product-taxability question — see **[Assign product tax codes (TICs)](https://support.taxcloud.com/en-us/articles/assign-product-tax-codes-tics-in-quickbooks-desktop-KPkDQ5U14K)**).

For anything more nuanced than "this customer never pays tax on anything," use a certificate-managed exemption in the TaxCloud dashboard (below).

### Need tax to apply for just one sale or state?

* **Temporarily switch** the customer's Tax Code to **Tax**, save the transaction, then switch back. The plugin reads the current value at save time.
* Or **use a separate customer record** (e.g. a "Walk-in Customer" set to **Tax**) for those sales.

## Exemption certificates in TaxCloud

An exemption certificate is the document proving a customer qualifies. TaxCloud keeps a record of it so you have one source of truth at audit time.

**Match the customer identifier.** For a certificate to apply to this customer's QuickBooks sales, it must be filed in TaxCloud under the **same customer ID the plugin sends**. The plugin's **Customer Reference** setting controls which QuickBooks value that is (ListID, Account Number, or Name) — see **[Settings reference](https://support.taxcloud.com/en-us/articles/taxcloud-quickbooks-plugin-settings-reference-Y5hZd8YLYm)**. Use that same value as the customer identifier when you add the certificate.

 ![The plugin's Customer Reference setting: ListID, Account Number, or Name](https://support.taxcloud.com/api/attachments.redirect?id=aa86c17b-e98b-426e-a2f1-06741c6b077b " =1932x314")

To add a certificate, follow [Add an exemption certificate in TaxCloud](https://support.taxcloud.com/en-us/articles/how-to-add-an-exemption-certificate-to-taxcloud-xfuUNu2Qnq?region=NG). You'll provide the state it covers, the exemption reason, and the validity dates. TaxCloud records the certificate's information for audit and compliance reporting (it doesn't store the uploaded file itself).

## Troubleshooting

**Tax still shows after I set the customer to Non.**

* Confirm you saved the customer record (**Edit Customer → OK**).
* The invoice may have been saved before the change — open it and click **Save** again to recalculate.
* Open the **Capture History** tab in the plugin's Settings window to see whether the invoice was captured. The debug log (see **[Troubleshooting](https://support.taxcloud.com/en-us/articles/troubleshooting-the-taxcloud-quickbooks-plugin-aKbKmVr8SO)**) shows whether the exempt flag was sent.

**TaxCloud zeroed out tax, but I expected tax in one state.** The QuickBooks **Non** flag is global. Either use a separate customer record for that state, or keep the customer on **Tax** and manage a per-state certificate exemption in the dashboard.

**A customer is only sometimes exempt (e.g. occasional resale).** Keep their default Tax Code as **Tax** and switch to **Non** only for the exempt transactions — switch back after saving.

Mark a customer tax-exempt in QuickBooks Desktop

Updating to TaxCloud's new Shopify App (June 2024)

Shopify Order Import in TaxCloud

Shopify Reporting FAQ

Connecting TaxCloud to Shopify

How to Mark Customers Tax Exempt in Shopify

Keeping your TaxCloud and Shopify collection states in sync 

Shopify

Why do my TaxCloud orders have Fallback rates in BigCommerce?

Connecting TaxCloud to BigCommerce

Marking a Customer Exempt in BigCommerce

Upgrading from the Legacy BigCommerce Integration

BigCommerce

How to connect my Odoo store to TaxCloud

How to Connect my TaxCloud Account to Odoo Sale (Loyalty)

How To Connect my TaxCloud Account to Odoo Sale (Loyalty) - Delivery

How to Connect my TaxCloud Account to Odoo eCommerce

How to Connect my TaxCloud Account to Odoo Sale

How to Connect my TaxCloud Account to Odoo Amazon/TaxCloud Bridge

How to Connect my TaxCloud Account to Odoo TaxCloud & Subscriptions

Upgrading TaxCloud Modules in Odoo

Odoo

Connecting TaxCloud to WooCommerce

Enabling Exemptions In TaxCloud for WooCommerce

How to Configure WooCommerce Order Capture Behavior with TaxCloud

Understanding WooCommerce Integration Modes

How to Download Debug Logs in TaxCloud for WooCommerce

How to Enable Rate Limiting in TaxCloud for WooCommerce

WooCommerce

Troubleshooting QuickBooks Online Tax Calculation Errors

QuickBooks Online Integration: How to Resolve a Missing Account, Product Code, or Sales Tax Item Error

Managing your QuickBooks Online Product Catalog TICs in TaxCloud

How the QuickBooks Online Integration Works

How to Fix QuickBooks Online Line Items Showing No Tax (TIC 99992)

Preparing Your Invoice for Accurate Tax Calculation

Calculating Sales Tax on QuickBooks Online Invoices

Managing Invoices with Multiple Payments in Quickbooks (Real-Time Integration)

Calculating Sales Tax on QuickBooks Online Sales Receipts

Calculating Sales Tax on Estimates

Calculating Sales Tax on Credit Memos

Calculating Sales Tax on Refund Receipts

Managing Exempt Customers in TaxCloud for QuickBooks Online

Changing the Sales Tax Display Mode for QuickBooks Online

Connecting TaxCloud to QuickBooks Online

Reconnecting the QuickBooks Online integration after auth invalidation

QuickBooks Online

Connecting TaxCloud to Adobe Commerce or Magento

Marking Customers Exempt in Adobe Commerce

Adobe Commerce & Magento

Connecting TaxCloud to Chargebee

Chargebee

Connecting TaxCloud to Miva

Miva

Building a direct API integration with TaxCloud

Video: How to add or disable an integration

How to Add and Manage Integrations in TaxCloud

Reviewing and Submitting an Exemption Certificate

Building a custom API connection with TaxCloud

General Integrations

Connecting TaxCloud to Stripe

How to Mark Customers Tax Exempt in Stripe

Stripe

CSV Upload

Set up your TaxCloud account for QuickBooks Desktop

Install the TaxCloud QuickBooks Plugin

Calculating and capturing tax in QuickBooks Desktop

TaxCloud QuickBooks Plugin settings reference

Assign product tax codes (TICs) in QuickBooks Desktop

Troubleshooting the TaxCloud QuickBooks Plugin

Keeping the TaxCloud QuickBooks Plugin updated

Migrating to TaxCloud from Avalara or another tax tool (QuickBooks Desktop)

QuickBooks Desktop

Integrations

Getting Started

Account and Billing

Plans and Pricing

TaxCloud's APIs

General

Exemptions and Certificates

Support and Resources

State Notices and Licenses

Transactions and Reporting

Filing and Compliance

Tax Concepts

TaxCloud Onboarding Webinars

What is TaxCloud's Premium Trial?

How to Set Up and Manage Locations

How to Take Your Integration Live

Preparing For Onboarding

How to add/remove a contact from your TaxCloud account.

How to Update My New Business Address With The States?

Best Practices for your TaxCloud Account

Verify Your TaxCloud Account is Complete for Calculations

How to Enable & Disable Tax Collection in a State

How do I reset my Password?

Video: How to complete your TaxCloud Business Profile

How to Use Multi-Account Login

How to Close Your TaxCloud Account and Cancel Subscription

I have a new EIN. How does that impact my TaxCloud account?

TaxCloud Account Lockout Policy

How to change the email address on your TaxCloud account

Account Management

How to create a TaxCloud account?

Account Setup

How can I get a copy of my TaxCloud invoice receipt?

How Payment Methods Are Used For Billing and Tax Funding

How do I change my default payment method?

How to Add a Payment Method in TaxCloud

Understanding Your Plans & Billing Page

Billing and Payments

Understanding the difference between TaxCloud Starter and Premium Plans

Changing your TaxCloud Subscription Plan

Fee Schedule: Understanding TaxCloud Fees

What are API calls and what do they do?

Where to Find Your API Credentials

TaxCloud System Status

What happens if I go over my allotment of orders or filings?

What's the difference between a lookup and an order?

Understanding the Minnesota Delivery Fee

How to Speak to a member of each state's DOR

Does TaxCloud collect the Colorado Retail Delivery Fee (CO RDF)?

How do I find my Merchant Number?

What Services Does TaxCloud Provide?

Is TaxCloud collecting Illinois Retailer's Occupation Tax (ROT)?

What is a multi-state id or sstid?

How do I confirm a rate with TaxCloud?

What is a voluntary seller?

How to Speak to a Member of Each State's Tax Authority or Department of Revenue

Can TaxCloud help with my State Income Taxes?

What are Home Rule States?

Understanding Nexus Threshold Calculations

How to Add an Exemption Certificate to TaxCloud

How to Upload Exemption Certificates in Bulk

What is an Exemption Certificate?

TaxCloud Audit Support Overview

How to contact TaxCloud?

Does TaxCloud Handle Sales Tax License Renewals?

Nebraska - Enforcement of Lien Notice

How to register in a new state and obtain my Sales Tax License

Louisiana State Sales Tax Rate Update

Florida Hunting, Fishing, and Camping Sales Tax Holiday (Sept 8 – Dec 31, 2025)

When To Forward a State Notice to Taxcloud

Arkansas - Excise, Waste Tire or Withholding Wage Tax

California - CDTFA Statement of Account

Colorado SUTS Filing Reminder Notices

Connecticut - Delinquency Notice

Florida - Credit Memo

Indiana - Notice of Proposed Assessment

Michigan - Business Taxes Registration Summary of Changes

New Jersey - Certificate of Registration

North Carolina - Certificate of Registration

Rhode Island - Failure to Renew

Tennessee - Notice of Overpayment

Texas - Notice of Tax/Fee Due

Texas - Sales & Use Tax Return Paper Form

Wyoming - License Certificate

When does TaxCloud pull my tax funding?

Understanding Tax Reports and Drilling Into Transaction Details

Does Washington B&O (excise) Tax Appear in Your TaxCloud Reporting?

Understanding the differences between TaxCloud Tax Reporting and Your Platform's Tax Reporting

Using the Download Center for Reports

Reporting

How to Import Partial Refunds via CSV

CSV Template Required Fields and Column Descriptions

When is the deadline to upload my transactions to TaxCloud?

Why are exempt sales taxing in my import?

What is TaxCloud's policy regarding Transaction import timing?

How to Upload Transactions via CSV

Uploading Transactions via CSV

Uploading Historical and Marketplace Transactions via CSV

Transactions: Import and Export

Transaction Timestamp Policy

How to Filter Transactions with Advanced Search

Managing your transactions

How to manually return a transaction in TaxCloud?

Can I edit a transaction?

How to View and Share Transaction Details

How to Locate a Transaction URL in TaxCloud

Transactions: Overview

Navigating Your Tax Dashboard

Understanding TaxCloud's Filing Costs & Filing Subscription

What are TaxCloud Filing Fees?

Understanding Your Tax Reporting Page

What does it cost for TaxCloud to file for me in non-SST states?

Does TaxCloud file Withholding Tax?

Filing: General

How to Request TaxCloud to Begin Filing Sales Tax Returns

How do I confirm my filings have been submitted in SST / Streamline member states?

How to Stop Filings with TaxCloud

How can TaxCloud assist with Filing?

Enabling Filing in TaxCloud (via Thresholds Page)

I just got a filing frequency change notice, what should I do?

How do I know if TaxCloud is filing for me in a state?

Why might my Direct Filing ACH be less than what TaxCloud is saying I collected.