# Tax exemption for US shoppers ## Overview In the US, sales tax is required for transactions in most [states](/taxes/taxes/tax-regulations.md#us-sales-tax), and it is imposed on the end-consumers who receive the delivery of the order (digital or physical). Some organizations and individuals are exempt from paying this sales tax, for various reasons. Tax Exemption Certificates (TEC) are the proof by which a business, institution or individual attests that it is a tax-exempt entity, or that it is purchasing an item with the intent to use it in a way that has been deemed exempt from having sales tax applied. ## Availability * US Sales Tax Exemption is available upon request to merchants using the reseller business model (MOR). Contact [Merchant Support](https://www.2checkout.com/merchant-support/) [(supportplus@2checkout.com](https://verifone.cloud/docs/2checkout/Documentation/07Commerce/Taxes/\(supportplus@2checkout.com)) to enable it on your account. * New orders with US sales tax exemption are available when using [ConvertPlus](/shopping-carts/convertplus.md) / [Inline cart](/shopping-carts/inline.md) shopping carts or via the API integration. * Support for automatic renewal orders with US sales tax exemption is available, as long as the initial/previous order was flagged as tax-exempt (on any integration type). ## Tax-exempt orders To receive orders with US sales tax deducted from the total value, a **2Checkout tax-exempt ID** needs to be filled in during the ordering process. The tax-exempt ID is generated by the 2Checkout support team upon receiving tax-exemption proof from a business/institutional shopper. ### 2Checkout tax-exempt ID To request a 2Checkout tax-exempt ID, shoppers must send an email to along with the Tax Exemption Certificate (TEC). 2Checkout tax-exempt ID is applicable only for B2B orders (placed by a US-registered entity). Common reasons for sales tax-exemption are related to the fact that the shoppers are purchasing with the intent to resell or that they are purchasing for an entity that fits in one of these categories: * Federal, local or tribal government institutions. * Educational, religious or charitable entities. * Foreign diplomatic organizations. If the Tax Exemption Certificate requires the shopper to fill in a seller name, the following company information must be included: * Avangate Inc dba 2Checkout, 1170 Great Oaks Way no. 210, 30022 Alpharetta, Georgia * Verifone Payments BV dba 2Checkout, Singel 250, Amsterdam 1016AB, Netherlands ### New orders When placing a new order, the shopper must fill in the 2Checkout tax-exempt ID to deduct taxes from the order value before placing it. 1. During the checkout, the Business order flow needs to be selected. 2. **United Stated of America** needs to be selected as a billing/delivery country. Company name and state need to match what is referenced on the Tax Exemption Certificate. 3. The shopper needs to check the **The company is tax exempt** option. 4. The 2Checkout tax-exempt ID needs to be filled in the dedicated field. 5. If validation is successful, the tax amount will be displayed as zero. Validation checks for a match between the 2Checkout tax-exempt ID, company name, state and validity period of the provided tax exemption certificate. 6. The shopper can proceed with the order flow.
### Automatic renewal orders If the initial order triggering the purchase of a recurring subscription is made using a valid 2CO tax exempt ID, all subsequent automatic renewals will inherit the tax exemption status (as long as the Tax Exemption Certificate is still within validity period). Alternatively, 2Checkout can refund the sales tax to the customer's payment account after the transaction is complete. The refund can be requested by the shopper by emailing a copy of their Tax Exemption Certificate together with the order details to . Once the initial order is flagged as tax-exempt in the 2Checkout system, all renewals linked to that order will also be tax-exempt if the certificate the shopper has provided is still valid when the renewal order is created. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.2checkout.com/taxes/taxes/tax-exemption-for-us-shoppers.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.