What does "tax exempt" mean, and when does it apply?

You'll see a "I am tax exempt" toggle in your Business & Tax info. Here's what it actually means, and how to know if it applies to you.

What "tax exempt" means

Being tax exempt means you're legally not required (or not permitted) to charge VAT on your invoices — it doesn't mean you don't pay tax at all, just that VAT specifically doesn't apply to your sales.

When it typically applies

This usually happens in one of a few situations:

• Your business is below your country's VAT registration threshold.
• You're operating under a simplified small-business tax scheme — for example, the French auto-entrepreneur regime or the German Kleinunternehmer rule.
• The specific service you provide falls under a local VAT exemption.

How to know if it applies to you

Whether you qualify depends entirely on your own business's registration and your country's rules — it's never something to decide based on what ChefMaison shows you (like your commission rate). It's always worth confirming with your accountant or local tax authority before marking yourself as exempt.

Updated on: 14/08/2026