--> Skip to main content
Avalara Help Center

Exemption Reason Matrices for US and Canada (Entity/Use Code List)

This article applies to:Avalara AvaTax

List of available entity use codesHoverTT.png that you can use to apply exemptions in the Admin Console. The Matrices show states and countries by business type and exemption reason. Exemption reasons are different based on the country and state level . The first matrix shows US business types while the second one breaks it down at the state level. The third matrix lists the exemption reason and business type for Canadian provinces and territories. All three of these are based on the country chosen in the Issuing Country field of the Exemption Certificate entry.

List of entity/use codes

Entity/use codes are represented by the letters and the word TAXABLE. The text after the letter is the exemption reason. Example: Entity/use code A applied to a customer would mean they are exempt because the customer is Federal Government.

  • A - FEDERAL GOV
  • B - STATE GOV
  • C - TRIBAL GOVERNMENT
  • D - FOREIGN DIPLOMAT
  • E - CHARITABLE/EXEMPT ORG
  • F - RELIGIOUS/EDUCATIONAL ORG
  • G - RESALE
  • H - AGRICULTURE
  • I - INDUSTRIAL PROD/MANUFACTURERS
  • J - DIRECT PAY
  • K - DIRECT MAIL
  • L - OTHER/CUSTOM
  • N - LOCAL GOVERNMENT
  • P - COMMERCIAL AQUACULTURE
  • Q - COMMERCIAL FISHERY
  • R - NON-RESIDENT
  • TAXABLE) Not exempt - taxable customer*

Special limitations:

  • A, B, and N are for use in the United States only.
  • P, Q, and R are for use in Canada only.

*Using TAXABLE as the entity use code forces a typically exempt customer to be taxed. This is how you can make an exemption certificateHoverTT.png in CertCapture or ECMS not apply to a sale.

US business type – Exemption reason matrix

This matrix is based on the country chosen in the Issuing Country field of the Exemption Certificate entry. Valid entries for the business type and its exemption reason are indicated below.

Exemption Reason

A)

FEDERAL GOV

B)

STATE GOV

C)

TRIBAL GOVERNMENT

D)

FOREIGN DIPLOMAT

E)

CHARITABLE / EXEMPT ORG

F)

RELIGIOUS / EDUCATIONAL ORG

G)

RESALE

H)

AGRICULTURE

I)

INDUSTRIAL PROD / MANUFACTURERS

J)

DIRECT PAY

K)

DIRECT MAIL

L)

OTHER / CUSTOM

N)

LOCAL GOVERNMENT

Business Type

Accommodations and food services

 

 

 

 

 

 

Y

 

 

Y

Y

Y

 

Agricultural, forestry, fishing and hunting

 

 

 

 

 

 

Y

Y

 

Y

Y

Y

 

Construction

 

 

 

 

 

 

Y

 

 

Y

Y

Y

 

Finance and insurance

 

 

 

 

 

 

Y

 

Y

Y

Y

Y

 

Information, publishing and communication

 

 

 

 

 

 

Y

 

Y

Y

Y

Y

 

Manufacturing

 

 

 

 

 

 

Y

 

Y

Y

Y

Y

 

Mining

 

 

 

 

 

 

Y

 

Y

Y

Y

Y

 

Real estate

 

 

 

 

 

 

Y

 

 

Y

Y

Y

 

Rental and leasing

 

 

 

 

 

 

Y

 

 

Y

Y

Y

 

Retail trade

 

 

 

 

 

 

Y

 

 

Y

Y

Y

 

Transportation and warehousing

 

 

 

 

 

 

Y

 

 

Y

Y

Y

 

Utilities

 

Y

 

 

 

 

Y

 

Y

Y

Y

Y

 

Wholesale trade

 

 

 

 

 

 

Y

 

 

Y

Y

Y

 

Business services

 

 

 

 

 

 

Y

 

 

Y

Y

Y

 

Professional services

 

 

 

 

 

 

Y

 

 

Y

Y

Y

 

Education and health care services

 

Y

 

 

Y

Y

Y

 

 

 

 

Y

 

Nonprofit organization

 

 

 

 

Y

Y

 

 

 

 

 

Y

 

Government

Y

Y

Y

Y

 

 

 

Y

 

 

 

Y

Y

Not a business

 

 

 

 

 

 

 

 

 

 

Y

Y

 

Other

 

 

 

 

 

 

Y

 

 

Y

Y

Y

 

State - Exemption reason matrix

Exemption reasons differ from state to state. Valid entries for the business type and its exemption reason are indicated below.

T = Taxable (non-exempt)

E = Exempt (non-taxable)

P = Partially taxable

* = Some locals taxable

Exemption Reason

A)

FEDERAL GOV

B)

STATE GOV

C)

TRIBAL GOVERNMENT

D)

FOREIGN DIPLOMAT

E)

CHARITABLE / EXEMPT ORG

F)

RELIGIOUS / EDUCATIONAL ORG

G)

RESALE

H)

AGRICULTURE

I)

INDUSTRIAL PROD / MANUFACTURERS

J)

DIRECT PAY

K)

DIRECT MAIL

L)

OTHER / CUSTOM

N)

LOCAL GOVERNMENT

Alabama E E E E E E E P E E E E E
Alaska None None None None None None None None None None None None None
Arizona E T T E E E E E E E E E T
Arkansas E T E E T T E E E E E E T
California E T E E T T E P P E E E T
Colorado E E E E E E E E* E* E E E E
Connecticut E E E E E E E E E E E E E
D.C. E E T E E E E T T T E E E
Delaware None None None None None None None None None None None None None
Florida E E E E E E E E E E E E E
Georgia E E T E T T E E E E E E E
Hawaii E T T E T T P T P T T T T
Idaho E E E E E E E E E E E E E
Illinois E E T E E E E E E E E E E
Indiana E E T E E E E E E E E E E
Iowa E E E E E E E E E E E E E
Kansas E E E E E E E E E E E E E
Kentucky E E T E E E E E E E E E E
Louisiana E E E E E E E E E E E E E
Maine E E E E E E E E E E E E E
Maryland E E T E E E E E E E E E E
Massachusetts E E E E E E E E E E E E E
Michigan E E E E E E E E E E E E E
Minnesota E E E E E E E E E E E E E
Mississippi E E E E E E E E E E E E E
Missouri E E T E E E E E E* E E E E
Montana None None None None None None None None None None None None None
Nebraska E E E E E E E E E E E E E
Nevada E E E E E E E E T E E E E
New Hamp None None None None None None None None None None None None None
New Jersey E E T E E E E E E E E E E
New Mexico E E E E E E E E T E E E E
New York E E E E E E E E E E E E E
North Caro E E E E T T E E E E E E T
North Dako E E E E E E E P E E E E E
Ohio E E T E E E E E E E E E E
Oklahoma E E E E E E E E E E E E E
Oregon None None None None None None None None None None None None None
Pennsylvania E E T E E E E E E E E E E
Rhode Island E E E E E E E E E E E E E
South Caro E T E E E T E E E E E E T
South Dako E E E E T E E E T E E E E
Tennessee E E E E E E E E E E E E E
Texas E E E E E E E E E E E E E
Utah E E E E E E E E E E E E E
Vermont E E T E E E E E E E E E E
Virginia E E T E E E E E E E E E E
Washington E T E E T T E T E E E E T
West Virginia E E T E E E E E E E E E E
Wisconsin E E E E E E E E E E E E E
Wyoming E E E E E E E E E E E E E

Canadian province - Exemption reason matrix

This matrix is based on the country chosen in the Issuing Country field of the Exemption Certificate entry.

T = Taxable (non-exempt)

G = GST taxable only

E = Exempt (non-taxable)

Exemption Reason

A)

FEDERAL GOV

B)

STATE GOV

C)

TRIBAL GOVERNMENT

D)

FOREIGN DIPLOMAT

E)

CHARITABLE / EXEMPT ORG

F)

RELIGIOUS / EDUCATIONAL ORG

G)

RESALE

H)

AGRICULTURE

I)

INDUSTRIAL PROD / MANUFACTURERS

J)

DIRECT PAY

K)

DIRECT MAIL

L)

OTHER / CUSTOM

N)

LOCAL GOVERNMENT

P)

COMMERCIAL AQUACULTURE

Q)

COMMERCIAL FISHERY

R)

NON-RESIDENT

Canada T E E T T T T T T T T T T T T T
Alberta None None None None None None None None None None None None None None None None
British Columbia G T E T T T G G G T T G T G G G
Manitoba T T E G T T G G T T T T T G G T
New Brunswick T T E T T T T T T T T T T T T T
Newfoundland and Labrador T E E T T T T T T T T T T T T T
Northwest Territories None None None None None None None None None None None None None None None None
Nova Scotia T E E T T T T T T T T T T T T T
Nunavut None None None None None None None None None None None None None None None None
Ontario T E E T T T T T T T T T T T T T
Prince Edward Island T T E T T T T T T T T T T T T T
Quebec T T E T T T T T T T T T T T T T
Saskatchewan G T  E G T T G G G T T G T G T G
  Yukon Territory None None None None None None None None None None None None None None None None

1 Includes Hospital Equipment and Insurance/Benefits Plan.

2 Limited to Motor Vehicle purchased by non-resident or Status Indian.