If this is accurate, it sounds as though marking a customer as tax-exempt does nothing. Are you really saying that the system will ignore the tax-exempt status of the customer if I am selling them an item that I also sell to my taxed customers? What is the purpose of marking a customer as tax-exempt if the system will still be making its tax decisions based on the items being sold? Just for our own records? I can't expect my employees to remember who is tax exempt every time they process an invoice.