customer sales tax exempt issue

[wajake41]

I am working on transitioning from the Weiland B2B sales tax exempt module. I have created a customer with a shipping address in Missouri. The customer's sales tax exempt flag has been set to "Yes" .
When I login as this customer and set up an order that ships to the customer;s ship to address I see that the sales tax exempt in the token list on page OSEL is on. However when I continue the order to OPAY sales tax is added to the order.Is this an issue? I have opened a ticket but maybe someone here has the answer to what I am doing wrong.
Question: If a purchasing agent is buying product with ship to addresses in multiple states having sales tax, does it have to have a customer account in each state where they have sales tax exemption? Seems like there should be a way to have multiple state sales tax exemptions for one customer.
Cheers,
Larry

[wajake41]

I must be missing something. I setup a customer with bill and ship to address in Missouri. I make the customer sales tax exempt. Acting as that customer I placed an order with a ship to address of San Clemente, CA.
Page OPAY shows zero sales tax . Is this the way this is supposed to work?

[wajake41]

So I think I am understanding. Sales tax exempt is for B2B sales. So no sales tax is charged when an order is shipped to any other state. Product is for retail sale by the party receiving the merchandise.
I think I've got it now.
I did see one thing that puzzles me though. When I shipped to Missouri using my customer record with my Missouri addresses, the order shows sales tax. An order in this case shipped to Missouri is not considered a B2B sale?

[ILoveHostasaurus]

If an entity ("customer" or "business") is sales tax exempt, they're exempt regardless of where it is shipping. The assumption is if you're selling to an entity who has been marked exempt, they are now the party responsible for collecting and remitting the appropriate sales and use tax for their purchase. If you have products that are specifically never to be taxed, you can mark them as not taxable. If you require more granular control of sales tax, where you have customers who are only exempt for certain states, that would require a third party tax solution designed for those use cases.

[wajake41]

Hi David: That sounds like what we need to replace the Weiland B2B module. What still puzzles me is that when shipping instate (same state on customer record and ship to state) , Missouri address to Missouri address, that sales tax is applied to the order. When testing shipping to 2 other states, no sales tax was applied to the order.

[lesliekirk]

A question to ask is: "what should the Sale Tax Calculation be set to?" If you are not using any third-party service. I'm thinking it should be "State Based Sales Tax".

[ILoveHostasaurus]

If the customer is marked tax exempt, and you are not using a third party tax module, they should not be assessed tax regardless of shipping/billing info because that is not looked at at all. If you've got a third party tax module attached, those will not likely know about, or honor, the Miva Merchant tax exempt status set at the customer level.