This guide explains how to handle tax-exempt customers, both from your perspective as the merchant (configuring their account) and from their perspective as the customer (completing checkout without sales tax).

Overview

A tax-exempt customer can complete a purchase without paying sales tax, provided they have a valid exemption certificate. As the merchant, you're responsible for verifying the exemption is legitimate, configuring your e-commerce platform to recognize them as exempt, and retaining their certificate for compliance and audit purposes.

Common types of tax-exempt customers

Resellers / wholesalers (most common). They're buying for resale and will collect sales tax from their own customers.
Non-profits
Government entities (federal, state, local, tribal)
Educational institutions (public and private)

Part 1: Setting up exempt customers in BigCommerce

Step 1: Verify the exemption type

Review the tax-exempt paperwork your customer provided. Most exemptions are for resellers, but you may also see non-profits, government entities, or other types. Confirm the type before proceeding.

Step 2: Apply the tax-exempt code

Log in to your BigCommerce account.
Navigate to the customer's record.
On the edit-customer page, find the option to enter a tax-exempt code.
For resellers, enter RESALE. This classifies them with a "reseller" exempt classification in Zamp's system.

Step 3: Confirm state-specific eligibility

Make sure the exemption is valid in the customer's state. For example, if the customer is in Maryland, verify that the exemption paperwork meets Maryland's requirements.

Part 2: Setting up exempt customers in Shopify (resellers / wholesale)

To make a customer tax-exempt in Shopify for wholesale or resale purposes:

In your Shopify admin, navigate to the customer's record.
Find the tax exemption section.
Mark the customer as exempt and select the appropriate reason (e.g., "Reseller").
Save changes.

Once marked exempt, the customer's checkout will skip sales tax on qualifying transactions.

Part 3: Customer-facing checkout instructions

Share these steps with your tax-exempt customers, or use them to train your support team.

What customers need to do

1. Have a tax exemption certificate ready

Customers should obtain a valid certificate from their organization (university, non-profit, government entity, reseller permit, etc.) before beginning checkout.

2. Submit the certificate for verification

Customers can submit their certificate by:

Email. Send a copy to your support team for review.
Phone. Call your support team to discuss tax-exempt status and provide certificate details.
Online upload. Use any tax exemption portal or form on your website.
During checkout. If your checkout system has an exemption upload feature.

3. Wait for verification

Your team reviews and verifies the certificate. Once approved, the customer's account is flagged for tax-exempt status.

4. Complete the purchase

After verification, tax-exempt customers can proceed without sales tax at checkout.

Sample messaging you can share with customers

"To complete a tax-exempt purchase on our website, please have your valid tax exemption certificate ready and contact our support team before placing your order. We'll verify your certificate and ensure you're not charged sales tax during checkout. This process helps us comply with tax regulations while providing you with the exemption you're entitled to."