We had an order today for a gift card, and it added tax to the amount. Can we set it up so that Gift Cards do not get taxed?
Yes, it is possible to set up a special tax rate for any department. In this case, you can set up a zero tax rate for all products in the Gift Card department.
If you do not have a gift card department, you will need to create one. Be sure to assign your gift cards to that department .
Next go to Store Manager > Website > Setup > Sales Tax and click on the ADD button.
You can then fill out the various fields.
1. State - If you have stores in more than one state, then you will have to make one of these gift card tax rates for each state. Use the dropdown to pick the state.
2. Department - Use the dropdown to find the Gift Card Department.
3. Tax - Put in NO TAX.
4. Tax Rate - Put in 0 (Zero).
5. Put in the Start and End date (end date can be far in the future).
6. Click Insert and the rate will be set up.