Tax exemptions and overrides
Recharge will charge 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.
- BigCommerce Checkout Integration
- Recharge Checkout on BigCommerce
- Recharge Checkout on Shopify
- Shopify Checkout Integration
- Tax overrides are unavailable to merchants using the Shopify Checkout Integration, as listed in the feature status guide.
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
- Recharge Checkout on Shopify
- Shopify Checkout Integration
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:
- In the merchant portal, select Settings and then Taxes.
- 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.
- From the Recharge merchant portal, click Customers and select Customers from the dropdown.
- Search for and select the customer you want to mark as tax-exempt.
- Click Edit customer from the Customer Overview section.
- Click the This customer is tax-exempt checkbox.
- Click Save.
Tax overrides
At this time, the Recharge Checkout on Shopify does not work with the Shopify tax override feature. If you use tax overrides in Shopify, they will not be reflected in Recharge.
Contact the Recharge support team with a list of tax rates to set a specific tax rate per location.
Recharge integrates with Avalara to offer more robust tax offerings, such as per-product tax rates.
