This tab allows you to configure which tax jurisdictions this inventory is exempt for.

When no exceptions are defined, then the inventory items are fully taxable, based on the customer tax status, unless the product code assigned to this item has a sales tax exception. Create exceptions only when necessary to not calculate a tax amount for that code. When the tax code supports Partial taxes, you can assign which provinces have an exemption ‘rebate’, and on sales orders for customers within that province, the partial tax rate is used. If both the inventory item and the related product code have sales tax exceptions configured, inventory exceptions take precedence.

Video Instruction

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