Tax exemption can be managed for a single transaction or for a client who should always be tax exempt.

Important: For advice on handling tax exemptions for your business, please contact your CPA or qualified tax professional.

When creating or editing a transaction, you can find the tax options under the pricing total in the bottom-right section.

The Taxable Subtotal is calculated using the items on the transaction that are marked as taxable.

Tip: If the Taxable Subtotal does not match what you expect, check whether the products or other line items on the transaction have been marked as not taxable.

The options you see below the Taxable Subtotal will depend on whether your account uses automatic or manual tax calculation. To learn more about the difference between these options, see How to Set Up Manual and Automatic Tax Calculation.

When using Automatic Tax Calculation, Rentopian calculates the tax rate based on the transaction's delivery address.

If the transaction should be tax exempt, click the X next to the Taxable Subtotal. This will remove the calculated tax and mark that transaction as tax exempt.

If you remove the tax and later need to add it back, click the double-arrow button. Rentopian will recalculate the tax for the transaction.

If you see a message that there is no tax rate associated with the location, check the transaction's delivery address.

This message may appear because the delivery address is not entered correctly or because there is no applicable sales tax for the transaction's delivery location.

When using Manual Tax Calculation, the tax options below the Taxable Subtotal will show the tax rates you have created in Rentopian or synced from QuickBooks.

If you have a default tax rate or the delivery location matches a location assigned to one of your tax rates, the appropriate tax option may be selected automatically.

To learn how to create, group, and manage your manual tax rates, see How to Set Up and Manage Tax Rates.

If the transaction should be tax exempt, select No Tax from the tax options. This will remove tax from that transaction.

If you have a client who should always be tax exempt, you can set the exemption on their client profile instead of changing each transaction individually.

For example, this may be used for a nonprofit organization when your tax professional has confirmed that its transactions should be treated as tax exempt.

When a client is marked as tax exempt on their profile, Rentopian will automatically treat transactions for that client as tax exempt.

This applies whether your account uses manual or automatic tax calculation.

Good to know: When the selected client is marked as tax exempt on their profile, Rentopian will not allow you to change the tax on the individual transaction. The system recognizes that the client has been set as tax exempt for all of their transactions.

If you have questions about how to set up a tax exemption on a transaction or client profile, or how to manage the tax rate on a transaction, contact us at [email protected]. For advice about when a client or transaction should be tax exempt, please contact your CPA or qualified tax professional.