What is a tax exemption certificate?

A tax exemption certificate is an official document that proves a customer or organization is eligible to purchase goods without paying certain taxes.

Businesses often use tax exemption certificates for reasons such as:

• Resale purchases (for example, a retailer buying products to resell)
• Nonprofit or charitable status
• Government purchases
• Other legally recognized exemptions

The certificate usually includes details such as the customer’s name, tax ID or registration number (where required), exemption reason, and issuing jurisdiction.

In Shopify, merchants can use tax exemption information to help ensure that eligible customers are not charged tax on qualifying orders.