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# Handling Uploaded Orders Exemption

Tax exemptions play a crucial role in ensuring the accuracy of sales tax calculations and compliance reporting. Whether you’re dealing with nonprofit organizations, resellers, or other tax-exempt entities, properly handling exemptions in uploaded orders is essential for maintaining audit readiness and avoiding overcollection or misreporting.

## Customer Exemptions

If the order belongs to a customer with a valid exemption certificate, you need to explicitly indicate that in your upload. You have **three ways** to associate an exemption with the uploaded order:

### 1. Reference a Stored Certificate with `exemptionID`

If a certificate has already been created or uploaded and stored in TaxCloud, include the corresponding exemptionId in your order payload.

### 2. Let TaxCloud Auto-Match a Certificate

TaxCloud can automatically match a stored exemption certificate based on the customer’s ID and jurisdiction. To enable this:

* Omit the `exemptionID`.
* Still set `isExempt: true`.

> **Important**: Auto-matching works only if a valid exemption certificate already exists for the customer in the jurisdiction of the destination address.

### 3. Upload the Certificate After Order Creation

You may also upload the exemption certificate separately *after* the order has been created. In this case:

* Omit exemptionId in the order upload.  
* Still set `isExempt: true` to ensure proper treatment during filing.

Once uploaded, the exemption will be applied to the exempted customer.

### Additional Notes on Exemption Handling

* **Always set isExempt: true** when the order should be treated as exempt, regardless of whether you’re providing a certificate now or later.  
* Ensure **customer-level exemption settings** are configured correctly in the TaxCloud dashboard or via the Exemptions API. A mismatch between the customer’s exemption profile and the uploaded order could result in the order being taxed inappropriately.  
* For **multi-state or partially exempt scenarios**, ensure that the exemption certificate uploaded supports the destination jurisdiction.

## Next Steps

Now that you’ve configured taxability and exemptions correctly for uploaded orders, the next step is to learn how to handle errors when uploading orders.