Recharge charges taxes on all applicable orders processed for your store when enabled. There may be times when you're faced with unique tax situations for your products or customers. You can mark products and customers as tax-exempt in Recharge to avoid charging taxes on all orders.

Tax exemptions

You can set certain products and customers as tax-exempt in Recharge to prevent taxes from being charged in specific cases. If you have queued orders that may be affected after the tax exemption change, you must contact the Recharge support team to regenerate your stores queued charges as tax exemption will not go into effect until the next order processes. 

Setting a product as tax-exempt

You can set a tax exemption for individual products by turning off the tax setting on the product in Shopify. For stores using the Recharge Checkout on Shopify, be sure to set a tax exemption for auto-renew products along with the original product. 

In addition, for stores using the Recharge Checkout on Shopify, adjust your settings in Recharge as follows:

1. In the merchant portal, select Settings and then Taxes.
2. Ensure that Run a check to see if all products are taxable is checked.

Use BigCommerce's Manual Tax settings to set a tax exemption. See BigCommerce's guide on Charging Product-Specific Tax Rates with Manual Tax. 

Marking a customer as tax-exempt

You can mark customers as tax-exempt from the Recharge merchant portal.

1. From the Recharge merchant portal, click Customers and select Customers from the dropdown. 
2. Search for and select the customer you want to mark as tax-exempt. 
3. Click Edit customer from the Customer Overview section. 
4. Click the This customer is tax-exempt checkbox. 
5. Click Save.