# Set up Tax exempt for customer's order

**Tax-exempt** feature allows you to exclude taxes from a customer's order. The app will display **a tax section** in the cart (**cart drawer and cart page of your theme**) as well as in **our Quick Order Form**, where customers can enter their tax ID before checkout to receive a tax exemption.

<figure><img src="/files/Fzjb2Ehk6VSlZBEuyXXk" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/hkXA2ajWdOICVqNwLCWk" alt=""><figcaption></figcaption></figure>

For better understanding how to set it up, kindly follow the below instruction:&#x20;

### Step to manage:&#x20;

1. From the **App Dashboard page** > Go to the **Add-on features** page > Navigate to the **Tax exempt** section > **Set up tax exempt**:

<figure><img src="/files/3fPoWXWeCnpnS1jVVZUt" alt=""><figcaption></figcaption></figure>

2. In the **Tax exempt** setting page, set up **name** for this Tax setting and manage its **status** by toggling on and off slider:&#x20;

<figure><img src="/files/nLt3bR2cdI5714LIYP5c" alt=""><figcaption></figcaption></figure>

If you configure multiple tax-exempt settings, a **Priority** option will appear as shown below. This allows you to set the order of precedence. The higher the number, the higher the priority of that tax setting.

<figure><img src="/files/uiG7EB0bm2N0MA2fYIUr" alt=""><figcaption></figcaption></figure>

3. In the **Tax exempt general** section, you will set up how the tax exempt should function in your store.&#x20;

* At the moment, the app supports validating **5 types of tax ID**, tick on the type you want the app to work with (you can tick all or some types only):

<figure><img src="/files/plc926KokPOFEewGvql0" alt=""><figcaption></figcaption></figure>

* To recognize which order has tax-exempt, you can set up an order tag here. This tag will be auto-added to the customer's order once their order has been tax-excluded from the app:

<figure><img src="/files/aLLljl3NLoKRCHiWWQM7" alt=""><figcaption></figcaption></figure>

* **Decide How Tax Is Charged:** This option help you add a Discount to Exclude Tax from Product Prices:

<figure><img src="/files/Z655sXqSajZsyDxjR8YB" alt=""><figcaption></figcaption></figure>

You can choose to **apply a discount to each item** to exclude the tax portion from the product price. If this option is enabled, the system will automatically apply a discount equivalent to the tax amount, as shown in this example:&#x20;

<figure><img src="/files/haxS8LedNLqbCvJG5TXM" alt=""><figcaption></figcaption></figure>

**Example:**

* Original product price: **$100**
* Applied tax rate: **10%**
* Discount applied to exclude tax: **\~$9.09**

\=> Final product price after discount: **$100 - $9.09 = $90.91**\
(10% tax on $90.91 is approximately $9.09, so the total remains $100)

**Note:**\
If the product already has an existing discount (e.g., wholesale pricing), the tax-exempt discount will be *added on top* of the current discount.

4. In the **Customer condition** section, you can choose which type of customers will get this tax-exempt applied.&#x20;

It can be for everyone accesses your store or only some specific customers who login/login with tag:

<figure><img src="/files/Pf8c0WvLtftqcpfKpxIM" alt=""><figcaption></figcaption></figure>

5. **Tax Exempt Setup on Cart:** This setting helps you configure how the tax ID is validated in the cart.&#x20;

There are 3 options, you can tick on all or only specific ones:

<figure><img src="/files/P4JLh2BNQTjy2avOE7ut" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
[***Review this document for more details about this setting***](https://docs.samita.io/samita-wholesale-b2b/tax-exempt/configure-tax-exempt-setting-on-cart)
{% endhint %}

6. **Select EU VAT for specific countries:** Choose which countries within the EU will require Tax ID validation. [***Click here***](https://docs.samita.io/samita-wholesale-b2b/tax-exempt/select-eu-countries-for-vat-id-validation) to get more information about this setting.

<figure><img src="/files/xQvGk5cLv54YlCXyJ98c" alt=""><figcaption></figcaption></figure>

7. After finishing the setup, click **Save**.&#x20;


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