JiffyTrade allows you to mark individual customers as Tax Exempt.

This setting automatically affects how tax is calculated on Quotes and Invoices created for that customer.

📌 What Does “Tax Exempt” Mean?

When a customer is marked as Tax Exempt:

• Tax will not be applied to their documents
• Invoice totals will calculate without VAT
• Tax values will show as £0.00

This applies regardless of your global tax settings.

▶ How to Mark a Customer as Tax Exempt

1. Go to My Business → Customers
2. Edit the customer
3. Enable the Tax Exempt option
4. Save

All future documents created for this customer will reflect this setting.

🧮 How It Affects Calculations

If Tax Exempt is enabled:

• Line items will show 0% tax
• Tax totals will calculate as £0.00
• The final total will equal the net subtotal

If Tax Exempt is disabled:

• Tax is calculated according to your configured tax rate
• Line items apply standard VAT rules

🧾 Snapshot Behaviour

Tax Exempt status is included in the document snapshot.

This means:

• If a customer was Tax Exempt at the time of issuing an invoice,
• That invoice remains tax exempt permanently,
• Even if you later remove the Tax Exempt flag from the customer record.

This protects:

• Tax accuracy
• Historical compliance
• Audit integrity

⚠ Changing Tax Exempt After Documents Exist

If you change a customer’s Tax Exempt status:

• Future documents will follow the new setting
• Existing documents will not change
• Sent or Paid invoices remain locked

If you need to correct a tax mistake:

• Cancel the incorrect invoice
• Issue a corrected replacement

Do not edit historical financial documents.

🔐 Why This Matters

Incorrect tax handling can cause:

• Reporting errors
• VAT submission mistakes
• Accounting inconsistencies

JiffyTrade’s design ensures:

✔ Tax decisions are locked at issue time
✔ Historical invoices remain compliant
✔ Future documents follow current customer status

🧠 Best Practice

✔ Confirm tax status before issuing invoices
✔ Avoid toggling Tax Exempt casually
✔ Review customer tax settings during onboarding
✔ Use cancellation instead of editing historical documents

Tax settings should reflect legal reality at the time of issue.