Workaround for Resellers/Tax Exempt

[sarahbn]

If you are new to ZenCart and are having trouble installing modules, or if you can't or don't want to install the Tax Exempt module, you can use this workaround for your tax exempt customers. It is all done from the Admin so there's no code involved.

Go to Customers -> Group Pricing
Click "Insert" to create a group (I called mine "Utah Tax Exempt" 'cuz I'm in Utah)
It will ask for the percentage discount. Here's how you calculate that:
1 - (1 / 1.xx) where xx is the tax rate percentage, then round that off.
Example:
I have a 6.35% tax rate.
1 - (1/1.0635) = .0597085...
I entered 5.97 as my percentage discount.

That was the hard part 'cuz you had to do some math. Now for the rest:

Go to Modules -> Order Total.
See the Group Pricing module. Install that if it isn't already installed.
Change the settings on that module:
If you have included shipping in the sales tax calculation, check "true" under "Include Shipping." If not, check "false." (Utah requires charging tax on shipping so I checked "true.")
Under "Include Tax" check "true."
Under "Re-Calculate Tax" check "none".

Go to Customers -> Customers.
Select the customer who is tax exempt and click "edit".
At the bottom there will be a dropdown called "Discount Pricing Group." Select your tax exempt group (mine is Utah Tax Exempt).

I did that and it worked. It shows up at the checkout labeled as "Group Discount," but the order total ended up right. If it's off, it shouldn't be off by more than one cent.

I hope this helps someone!

[cshart]

Help!!! I can get the discount but the amount is not correct.

Here are my numbers. Where am I going wrong???

6.75% tax

1 -(1/1.0675) = .0632

Entered 6.32 into % but this didn't work.

[sarahbn]

How far off was it? If you give me the purchase amount, the amount of the shipping, amount of sales tax and amount of discount, I may be able to figure out where it's gone wrong.

[cshart]

Here are the figures you requested

Government agencies need this amount completely zeroed out. They can not pay even 1cent tax.

Sub-Total: $95.20
United Parcel Service (1 x 8.23lbs) (Ground): $8.22
Group Discount: -$6.90
OH Tax 6.75%: $6.98
Total: $103.50

[paulm]

Hi,

I wrote I little mod for 1.3.0.1. It should *completely* removes the tax for the listed tax exempt customers. It also uses the group discount table, but it does not need the group pricing module installed.

Would you like to test it, and see if it works as it should?

BTW: it does not show the tax at first and substract it again later. It even removes all tax form the products while shopping once the listed customer is logged in. I am not sure if that is the right legal way it should work.


oops got to hurry

[mmwilcox]

I needed this workaround and wanted to add my findings:

If other discounts are being used, you may not want shipping to get discounted. Other than that, it seems to work.

Matt