{"id":145408,"date":"2026-09-08T11:06:14","date_gmt":"2026-09-08T11:06:14","guid":{"rendered":"https:\/\/docs.daftra.com\/?post_type=user_manual&p=145408"},"modified":"2026-09-14T08:42:32","modified_gmt":"2026-09-14T08:42:32","slug":"guide-to-exempting-specific-clients-or-products-from-vat","status":"publish","type":"user_manual","link":"https:\/\/docs.daftra.com\/en\/user_manual\/guide-to-exempting-specific-clients-or-products-from-vat\/","title":{"rendered":"Guide to Exempting Specific Clients or Products from VAT"},"content":{"rendered":"

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The “Tax Exemption Rules” app allows you to set your own conditions to prevent VAT or other taxes from being applied to specific items or clients across the sales cycle’s outputs (sales orders, estimates, invoices, and others), so that the item remains untaxed or is only taxed at a zero rate (0%). In this article, we explain the steps to configure exemption rules in detail.<\/p>\n

Before You Begin<\/strong><\/p>\n

The “Tax Exemption Rules” app must already be enabled on the account. For more on how to enable it, see the “Activating the Tax Exemption Rules App” article.<\/a><\/p>\n

[\/vc_column_text][vc_custom_heading text=”Steps to Exempting Specific Clients or Products from VAT” font_container=”tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2″ use_theme_fonts=”yes” css=”.vc_custom_1788866807725{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}”][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”First: Accessing the Rule Settings” font_container=”tag:h3|font_size:22|text_align:left|color:%2304306b|line_height:1.8″ use_theme_fonts=”yes”][vc_column_text]<\/p>\n

Step 1: Access Invoicing Settings<\/strong><\/p>\n

From the main menu, click on “Sales,” then from the dropdown menu click on “Sales Settings,” then click on the “Invoicing Settings” card.<\/p>\n

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Step 2: Open the Manage Rules Screen<\/strong><\/p>\n

Under “Invoice Configuration” settings, the “Tax Exemption Rules Settings” setting will appear. Click the “Manage Rules” button to go to the exemption rules and conditions screen.<\/p>\n

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Step 3: Determine the Rule’s Basis<\/strong><\/p>\n

From the “Apply Rule To” field (dropdown list), select one of the following options:<\/p>\n