Yes. Products can be marked tax-exempt or assigned overrides.
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Yes. Shopify can handle tax-exempt products.
Merchants can configure product-specific tax settings or tax overrides so that certain products are treated as tax-exempt or taxed at a different rate where allowed by local tax laws.
This is useful for products such as:
Certain food items
Medical products
Books
Educational materials
Other goods that qualify for tax exemption or reduced tax rates
Using the correct product tax categories or overrides helps Shopify calculate taxes accurately for tax-exempt products.