is initially disabled for most AvaTax accounts. One exception is for customers participating in the and using Avalara as their Certified Service Provider (CSP). For these customers, the use of ECMS is required for SST companies.
If this is your first time using ECMS to exempt customers from sales tax, it is a best practice to collect a list of exempt customers with their customer code, address details, and their certificate information. Once you add all of your exempt customers, run an Exemption Certificate Export Report and compare the results with your list of exempt customers to confirm all of them have an ECMS exemption certificate entry.
To enable ECMS
Turn on ECMS in the Admin Console using the steps that follow.
- On the Settings tab, click Exemption Certificate Options.
- On the Exemption Certificate Options screen, click Enable Exemption Certificate Management System (ECMS) and then select one of the following options for transactions in the United States and Canada:
- Ignored: Exemptions are ignored by AvaTax and calculates tax.
- Optional: Exempts transactions if an exemption certificate is on file, or if the accounting system flags the transactions as exempt or passes an entity/use code.
- Required: Exempts transactions only if an exemption certificate is on file.
- The Exemption Override Code defaults to Taxable. This is the entity/use code you use to override an exemption for a particular transaction. Leave this setting at the default option.
- Click Save.
Why enable ECMS?
- Manage exemption certificate entries created in AvaTax
- View exemption certificate entries updated from CertCapture
Customers participating in the Streamlined Sales Tax Project (SSTP) and using Avalara as their Certified Service Provider (CSP) must use ECMS for SST states. Customers using CertCapture have their exemption certificate entries in ECMS automatically updated multiple times a day by exemption certificates in CertCapture.
Using ECMS is optional for:
- Customers not participating in the SSTP
- Customers participating in the SSTP and using Avalara as their CSP for non-SST states
ECMS country-level exemption certificate entries for the US and Canada are supported and are applied to all transactions for a country. CertCapture supports exemption certificates for the US and Canada.
Country-level exemption certificate entries for non-US countries are supported and are applied to all transactions for a country.
- Once enabled, ECMS can be used by each company in an AvaTax account.
- When ECMS is enabled, the exemptions column displays on the organization tab when company tax profiles is selected.