Tax exemptions overview

Goal

Understand how tax exemptions override tax determination for a party, item, and/or tax category — with optional certificate and validity dates.

Who it is for

Tax / finance staff with tax.view (read) and tax.manage (create/delete). Module statutory_compliance must be enabled.

How exemptions fit tax

1. Tax jurisdictions describe countries, states, and regions you operate in.
2. Tax determination rules pick a tax code and treatment (standard, zero_rated, exempt, reverse_charge) by jurisdiction, category, party type, and place of supply.
3. Tax exemptions are certificates / overrides. When an active, in-date exemption matches (party + item + tax category specificity), determination is skipped: rate 0, no tax code. Treatments on exemptions are only exempt or zero_rated (not reverse charge).
4. More specific matches win: party (weight 4) + item (2) + tax category (1).

Open the screen

Operations → Tax & Statutory → Tax exemptions (route /tax/exemptions).

Related

• Find tax exemptions
• Create a tax exemption
• Tax jurisdictions
• Tax codes