Magento Open Source, 1.9.x
Customer Tax Classes

Customer tax classes are created and assigned by customer type. For example, in some jurisdictions, wholesale transactions are not taxed, although retail transactions are.

Customer Tax Classes

To define a customer tax class:

1. On the Admin menu, select Sales > Tax > Customer Tax Classes.
2. In the upper-right corner, click the Add New button.

Customer Tax Class Information
3. Enter a Class Name for this tax class.

To link a customer tax class to a customer group, edit the customer group. You can then assign the customer group when creating or editing a customer.

4. When complete, click the Save Class button.