Managing invoices for tax-exempt customers requires specific steps to ensure that VAT is not applied and that the customer’s tax-exempt status is clearly indicated on the invoice. Below is a step-by-step guide on how to handle tax-exempt customers using Shopify and CommBilling.
Step 1: Mark the Customer as Tax-Exempt in Shopify
- Log in to your Shopify Admin Panel.
- Navigate to the Customers Section:
- From your Shopify admin, go to the "Customers" section.
- Select the Customer Profile:
- Click on the customer’s name or search for the customer you want to mark as tax-exempt.
- Edit Customer Details:
- Once you are in the customer’s profile, click on the "Edit" button to modify their details.
- Mark as Tax-Exempt:
- Look for the "Tax Exempt" checkbox in the customer details. Check this box to mark the customer as tax-exempt.
- Ensure that any necessary tax exemption documentation is collected and verified according to your business requirements.
Step 2: Generating the Invoice in CommBilling
- Click on CommBilling application
- Go to the order section and select the invoice for the tax-exempt customer
- Click on button "generate invoice". When generating the invoice, CommBilling will automatically recognize the tax-exempt status from Shopify and apply a VAT rate of 0%.
Double-check that the invoice reflects a VAT rate of 0% and that the tax-exempted mention is clearly mentioned. This will help prevent any misunderstandings and ensure compliance with tax regulations.