Tax-exempt coupon code?

  • Resolved jvetterick

    (@jvetterick)


    5 years, 11 months ago

    I love the coupon codes feature. But, I have a need which has a solution so obvious, I am dumbfounded as to why the feature isn’t already in Wooocommerce. In fact, every online store that sells to both businesses and consumers could benefit from the feature. If anybody knows a 3rd party plugin that can do this, or wants to write one, I’ll be your first customer and I know I’m not alone. Here goes:

    I sell my product to both consumers and business. Since I am in California, I charge in-state customers state sales tax. Most of my customers have a need for my product or make a purchase only once in a lifetime, so I have no interest setting up/maintaining login ids and passwords for customers.

    But some of my customers are resellers. I give them each a unique, easy for them to remember coupon code based on their email address that entitles them to a 15% discount. But if they are in-state resellers with tax exempt status, I merely want to make the coupon good for the 15% AND tax-exempt. I don’t want them to have to login or remember any credentials beyond their simple coupon code. As I create their coupon code I just want a checkbox that says. “Tax Exempt”. Simple and easy.

    I know I could just increase the % value of the coupon code to back out the taxes but this is a really bad idea, because my accounting system at the end will still show that I collected the taxes, and I’m at risk that I’ll send that money at the end of the quarter to the state. (Unless I do a lot of extra work to make sure my accountant doesn’t unnecessarily pay those taxes). Also the customer’s receipt will show that technically they still paid taxes. Not a good solution.

    I have to believe there are tens of thousands of stores that would benefit from such a feature. But if it doesn’t already exist, what is the best way to make a user role tax exempt?

    Thanks you.

Viewing 7 replies - 1 through 7 (of 7 total)
  • Linda

    (@lindamork)

    Automattic Happiness Engineer

    Hi there,

    You can make a specific user role tax exempt, but this would require that user to be logged-in for the tax exemption to take effect. Here’s a link to a snippet that will do just that: https://docs.woocommerce.com/document/setting-up-taxes-in-woocommerce/#section-19

    The following plugin should also work to exempt tax by user role: https://ignitewoo.com/woocommerce-extensions-plugins-themes/woocommerce-tax-exempt/

    A tax exempt button exists in some plugins but needs to be verified by entering a tax exemption code or account ID in order for the tax not to be applied to the total at checkout.

    Thread Starter jvetterick

    (@jvetterick)

    Thank you, Linda!

    I had already come across those plugins, but I really want one that operates on a coupon code. I don’t want to have to set up roles, or even require the periodic resale customers to log in or even have to remember a login. I don’t want to have to administrate logins, or even worry about that. It’s easiest with a coupon code. I make each coupon code unique to the customer and base it on their email address, so they can’t share it without us spotting it right away.

    So, since I wrote my above post, I’ve hired a developer to write me a custom plugin. It allows me to key in the Reseller’s resale certificate number I have on file, and then choose from a drop-down which existing coupon codes and taxes line items (I’d previously created in the standard woo setup) for which this code will be tax-exempt. It’s super cool, super simple. The regular woocommerce coupon functionality still works like normal. Her script just suppresses taxes.

    I’m encouraging her to package it and make available on www.ads-software.com. Every woocommerce store, in taxing states, that sells to both consumers and resellers needs tax exempt functionality. I have to believe a lot of folks will like the coupon code approach.

    Jeff

    Linda

    (@lindamork)

    Automattic Happiness Engineer

    Hi Jeff,

    Thanks for your reply and taking the time to include those details regarding the custom work you’re having a developer do for you. That’s very exciting and it’s excellent you’re encouraging her to submit that work to www.ads-software.com to be considered as a plugin in the repository. Very community minded indeed!

    Thanks again for taking the time to share this and all the best to you. I’m going to mark this as Solved. ??

    I’m wanting this as well. I was going to try creating a coupon code that discounted the exact percentage for my state. Is that maybe a short term fix?

    Thread Starter jvetterick

    (@jvetterick)

    I tried that method for a while, CrazyDude, but it is really a bad idea. The reason is that you are technically still collecting a “tax line item”, and then giving the money back. The customer’s receipt could get you are them in trouble at tax time if audited.

    Also, unless you do some reverse-accounting at the end of the year, you’ll accidentally pay to the state those tax line items you collected, not realizing that you backed out the money. You’ll be losing that money by giving it to the state accidentally. Follow?

    As I said above, I had a custom plugin made for me that does what you want. A coupon code plugin that prevents taxes from being added when the code is used. I don’t think my programmer has packaged or uploaded it yet to www.ads-software.com. If you want I’ll send her this link, and hopefully she will reach out to you. You got an email address I hit you up offline?

    jvetterick (@jvetterick)
    Thanks much for posting this. I, too, have been searching for this solution and would be interested if your developer has shared or marketed a tax-exempt-respecting coupon code plugin. Would you mind passing my info along to her as well … or point me in the direction of any other solution you may have discovered? Many thanks! [email protected]

    Thread Starter jvetterick

    (@jvetterick)

    Hi Judy,

    I forwarded your info to my developer. Hopefully she will reach out to you. I haven’t been in contact with her for a few months, but I’ve messaged her if I can post contact details/plugin availability details here. I’ll let you know when she responds.

    I am very happy with her plugin. It works perfectly. For any given coupon code, I can choose which taxes (Country, State) etc, should be exempt. It’s amazingly simple and effective. Of course, in my business, I only have the need to exempt California resellers, so I’m only using a small subset of its potential.

    One thing I did do is to also create my own Ninja Form on my site so that my resellers can digitally submit their “CA Resale Certificate” from a simple page on my website. By state law I have to have one “on file” for anyone I’m exempting. The Ninja Form automates that process. If you’re using Ninja Forms and you have similar need in your state, email me at [email protected], and I’ll shoot you a link where you can check out what I’ve built.

    Jeff

Viewing 7 replies - 1 through 7 (of 7 total)
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