Tax Exemption

Tax Exemption allows qualified B2B customers to validate their official Tax ID on the Cart page for automatic tax deductions at checkout.

Key Capabilities

• Multi-Region Tax ID Validation: Supports EU VAT, UK VAT, GST (India), and ABN (Australia).

• Flexible Customer Eligibility: Apply tax exemption rules to logged-in users only, or customers with specific tags (e.g., b2b, tax-exempt).

• Shipping Country Matching: Restrict tax exemption to orders where the shipping destination matches the country of the Tax ID.

• EU VAT Country Filtering: Choose to accept EU VAT IDs from all 27 EU member states or restrict validation to specific EU countries.

• Seamless Checkout Deduction: Tax is automatically removed at checkout as an Order Discount once the Tax ID is validated.

• Customizable Cart Widget: Customize all form text, button styles, error messages, and success notifications to fit your store's branding.

How to Configure Tax Exemption

In your B2Bridge Tax admin, go to Tax exemption in the left navigation or Set up tax exemption button on the dashboard to configure the following settings:

Step 1: Turn the feature on

Select the Enable Tax Exemption checkbox to activate the Tax ID input widget on your Cart page.

Step 2: Choose Accepted Tax IDs

In Accepted tax IDs, tick the ID types relevant to your business: EU VAT, UK VAT, GST (India), and/or ABN (Australia). Only the types you tick will be accepted as valid input on the storefront.

Step 3: Select Target Customer (Who can use it)

Choose who can validate their Tax ID on your store:

• Logged-in customers: Only customers who are logged into their store account can see and use the Tax ID widget.

• Customers with specific tags: Only logged-in customers with specific tags (e.g., wholesale, b2b) can validate their Tax ID.

Step 4: Shipping Country Rules (Apply exemption)

• Any shipping country: Tax exemption applies regardless of where the order is shipped.

B2Bridge calculates and deducts tax based on Shopify's tax settings. Therefore, the customer's shipping location must still belong to an active Market with tax collection enabled in Shopify for tax exemption to take effect.

• Only if shipping country matches the tax ID: Tax exemption is applied only if the shipping address matches the country associated with the Tax ID.

Step 5: EU VAT Countries

(Applicable when EU VAT is selected)

• Default (Unchecked): Validates Tax IDs across all 27 EU member countries.

• Selected Countries: Select specific EU countries (e.g., Germany, France) to restrict validation strictly to those nations.

Step 6: Widget Customization & Styling

Customize form labels, field placeholders, button text, error/success messages, and visual styling (colors and fonts) to match your store branding.

Step 7: Save and Verify

1. Click Save in the top right corner.

2. Go to your storefront, add a product to cart, open the cart page, and confirm the tax-ID box appears with your chosen text/colors. Enter a test tax ID matching one of your accepted formats to confirm the success/error messaging behaves as expected.

Note: B2Bridge deducts the tax amount on the Checkout page using an Order Discount equal to the total tax value. This guarantees full compatibility with Shopify's standard checkout flow without requiring complex order modifications.

Need Help?

If you have questions or run into issues while using any feature, we're here to help.

• 💬 Start a Live Chat with our support team directly from your B2Bridge dashboard.

• 📧 Email us at [email protected] and we'll get back to you as soon as possible.