Allowing Tax Exempt Order Types

There are many scenarios where you may need to adjust tax on an order:

• By Order Type - this is what we'll cover here. This could be a service company purchasing materials for a tax exempt customer without being tax exempt themselves, etc.
• By Customer - certain customers may be tax exempt. Examples could be non-profits, resellers, etc.

Step 1: Create Tax Exempt Order Type

1. If it is not already enabled, enable Order Types in your Settings by going to Settings → General Settings and searching for Order Type.
2. Ensure that Enable Order Types is set to Enabled.
3. Enter the name of your Order Type - for this example we're going to use TaxExempt. Note that if you haven't entered any other order types, you should have a default option appearing BEFORE the new Order Type. In our example, we have Retail.
4. Then in the Order Type Label, put Tax Exempt.
   
5. Scroll all the way to the bottom and click Save.

Step 2: Adding Custom Tax Class

1. Navigate to your tax rates by going to Items → % Taxes
   
   
2. Find your tax rate that you want to adjust and click the blue pencil icon to edit. Note that your custom tax rate you are about to set will only impact items set to this tax category. If you have multiple tax categories that you need to be effected by this custom rate, you'll need to do this process for each one.
   
3. Toggle on the order type rates by clicking Open order type rates.
4. If you've saved your custom order type in Settings, then you will see it here. Simply enter your desired special tax rate - our example is 0% for tax exempt - and click Save Changes.
   

Step 3: Marking an Order as Tax Exempt in the POS

Once you've done steps 1 and 2, your custom tax rate is ready to go. From the pos, create your order as you normally would and:

1. Tap Set Type from the right side of the screen
   
2. Select the desired order type from the drop down menu - for our example choose Tax Exempt.