Not every customer or every sale is taxable. To maintain compliance and prevent over-collection, you must configure how PayPack identifies tax-exempt entities and non-taxable transactions within NetSuite.
This guide covers setting up permanent customer exemptions (e.g., Resale, Non-Profit) and applying one-off exclusions to specific transactions.
Customer-Level Exemptions
If a customer has provided a tax-exempt certificate, you can configure their record so that Stripe Tax always returns a $0.00 tax result for them.
To ensure full compliance, PayPack synchronizes all transactions—including those that are tax-exempt—with Stripe. This allows Stripe Tax to accurately monitor your sales volume against regional thresholds and alert you as soon as you are required to register for tax in a new jurisdiction.
To exclude specific customers and transactions, go to the exclusion section.
How to configure a customer exemption:
Navigate to Lists → Relationships → Customers.
Click Edit on the desired Customer record.
Go to the Financial subtab.
Uncheck the Taxable checkbox (Legacy Tax).
Save the record.
If the Taxable checkbox on the NetSuite Customer record is unchecked, PayPack will automatically apply the exempt status to the corresponding Stripe Customer object, ensuring no tax is calculated for that entity.
Exclusions
There are times when a taxable customer makes a non-taxable purchase, or you need to skip tax calculation altogether for a specific reason (e.g., an internal adjustment or an order already taxed on an external platform like Shopify).
Skip Transaction
How to exclude a single transaction:
Open the Invoice, Sales Order, Cash Sale, or Quote/Estimate in NetSuite.
Navigate to the PayPack Data subtab → PayPack Fields.
Check the box labeled Exclude Tax Calculation.
Save the record.
Skip Customer
How to exclude a single customer:
Open the Customer in NetSuite.
Navigate to the PayPack Data subtab → PayPack Fields.
Check the box labeled Exclude Tax Calculation.
Save the record.
What happens next? When this box is checked, PayPack will bypass the call to Stripe Tax entirely. No tax will be calculated, and no transaction object will be created in your Stripe Dashboard for this specific record.