Tax-Exempt Customers Set Up in Magento 2

Tax-Exempt Customers – as a merchant if you deal with B2B businesses, this is probably a familiar concept. However, it’s not limited to just B2B interactions, and merchant could come across a Tax-Exempt customer. This pocket-sized tutorial focuses on making Tax-Exempt Customer configuration as simple as 1-2-3.

For the set up, we will be employing a combination of Tax Zone/Rate and rules, Customer Tax Classes and Customer Groups. If you are having trouble with any or all of these topics, you might find Your Guide to Taxes and Magento 2 extremely valuable. Assuming we are all caught up here, we will move on to setting up Tax-Exempt Customers.

Step 1: Create New Customer Tax Class

From the Magento Admin panel, go to Stores > Taxes > Tax Rules

You can either create a completely new class or edit an existing one. (Again if creating a Customer Tax Class is a foreign concept, Your Guide to Taxes and Magento 2 has it covered)

Name your new Customer Tax Class “Tax-Exempt”. Remember you can name it anything that makes it easy to recall.

Step 2: Assign Customer Tax Class to Specific Customer Group

From the Magento Admin panel, visit Customers > Customer Groups

Take this time to edit a group that you want to assign as “Tax-Exempt”. You could even create a new one if that suits your requirement better. For instance, we will create a group named Wholesale. When setting the Customer Group’s Tax you will set it to Tax-Exempt.

Step 3: Assign Customers to New Customer Group

From the Magento Admin panel, follow Customers > All Customers

Create a new Customer Group or edit an existing one. Here, for the example, we will be selecting our group that we just made above. Wholesale.

And that sums it up.

No rule, no tax – of course that applies for customers in this Customer Tax Class.

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