You have multiple options for managing the exempt status of your customers.
Exempt using CertCapture
CertCapture is a compliance tool for managing exemption certificates. It saves you time and helps you and your customers stay in compliance by:
- Synchronizing with AvaTax
- Making it easy to validate, store, manage, and retrieve sales tax exemption and reseller certificates
- Allowing bulk certificate requests with the campaign feature
- Acting as a for exemption certificates, assuring you have supporting documentation in case of an audit
Manage CertCapture yourself or contact your Customer Account Manager (CAM) for more information about how Avalara can manage it for you.
To find out how to subscribe to CertCapture or to upgrade to it, email firstname.lastname@example.org.
Exempt using the Avalara Exemption Certificate Management System (ECMS)
The Avalara Exemption Certificate Management System (ECMS) is a free service included with each AvaTax account. However, unlike CertCapture, ECMS isn't a system of record for storing and managing exemption certificates. ECMS doesn't store the exemption certificates themselves, only data about the exemption certificates called exemption certificate entries. AvaTax uses the information to exempt appropriate transactions from sales tax, but you're still required to save physical or digital copies of valid exemption certificates on site.
To begin using ECMS:
Exempt using exemption certificate numbers or entity/use codes
Use an exemption certificate number or the Entity/Use Code field in your accounting software and send that information to AvaTax.
Check your accounting software's documentation to learn the steps for using this approach and to confirm whether your accounting software is able to pass this information to AvaTax.
Once you've exempted the necessary customers, manage the varying taxability of your products and services.