When a tax-exempt customer makes a purchase through Shopify, Blackpurl needs to be configured to match the tax rates Shopify has calculated. This article walks you through setting up the required tax rates, account types, and customer records so that Blackpurl and Shopify stay in sync.
How Shopify Tax Works with Blackpurl
Shopify calculates the correct tax for a customer's address using its integration with Avalara, a third-party tax service. When a Shopify sale integrates into Blackpurl, the Internal Notes section of the order tells you which taxes need to be charged based on the customer's address, and what the invoice total should be.
The dealership must then update the tax rate applied to the Customer Record in Blackpurl so that the total of the Customer Order matches the Shopify order. It is the dealership's responsibility to assign the correct Account Type to each customer to ensure they are exempt from the right taxes and charged the correct taxes.
Before you can assign an Account Type to a customer, you need to confirm that the relevant tax rates and codes Shopify is using are already available in Blackpurl.
Steps
The following example walks through a customer based in Walla Walla, Washington, who is exempt from some taxes but not others.
Step 1: Set Up Any New Tax Rates and Tax Codes
Confirm that all tax rates and codes used by Shopify for the customer's location exist in Blackpurl. If any are missing, create them before proceeding. For instructions on adding tax rates and codes, see sections C and D of Other Tools > Tax Activity and Settings (no longer available).
Step 2: Set Up the Account Type
Once the required tax rates and codes are in place, create an Account Type that reflects the customer's exemption status. For instructions on creating Account Types, see Other Tools > Tax Activity & Settings - Setting up Account Types (includes the control of tax exemptions) (no longer available).
When creating the Account Type, select all tax rates the customer is exempt from. Leave unselected any taxes the customer must still pay.
In the Walla Walla example, you would select all tax rates except Walla Walla County Tax and Washington State Tax. This means the customer will only be charged those two taxes.
Step 3: Assign the Account Type to the Customer
Navigate to the relevant Customer Record and assign the new Account Type.
1. Open the Customer Record and click Edit.
2. Under Account Type, select the Account Type you created.
3. Click Save.
Step 4: Process the Customer Order
With the correct Account Type assigned, you can now process the Customer Order for the customer and the correct tax rates will be applied automatically.
Tip: If a Customer Order for a Shopify sale already existed before the correct Account Type was assigned to the customer, assign the Account Type first and then open the Customer Order and click Recalculate all pricing to apply the updated tax rates.