To create a tax free item or order, a new tax must first be created. To do this, go to the Products tab and select Taxes. You can create new taxes from here.
Press the Add New button in the top right hand corner of the page. This will open a new menu below your current taxes list. Here you must give the tax a name and a type. The type does not matter much in this instance, since it will be set at zero. After you name the tax, press the Save button below.
You then need to create a new Tax Category. Go to the Categories tab, and press the Add New button. This will a new Tax Category to the list. Give the category a name, and press the Save link on the right hand side of the list.
From here, go to the Tax Rate tab. To create a new Tax Rate, press the Add New button in the top right hand side of the page. A new window will pop up. This is where you select which tax you are creating or editing. Select the tax and the Tax Category from the drop-down menus. If your new tax does not show up in the drop-down menu, close the pop-up window and refresh the page. You should also set the Tax Rate to zero and press the Save button.
After your new tax is saved, go to the Tax Groups tab. The tax group is what groups together taxes and is assigned to products. To create a new Tax Group press the Add New button in the top right hand corner of the page. This will open a new window where you give the new tax group a name and assign taxes to it. To assign a tax to the group select on from the list on the left hand side of the pop up window. Once it moves over to the right side it will be assigned to this group. After the taxes have been assigned and the group named press the Save button.
Now that the tax and Tax Group has been created, you can now assign the Tax Group to a product or order. To change the tax of an order, go to the Events section. Go to the Tax Category option and select the new tax that was created. This will change the tax on the order.
