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Avalara Help Center

Exempt Customers from Tax

There are three ways to exempt customers from tax in AvaTax for Accounting Seed for Salesforce:

  • Use the Exemption Certificate Management System (ECMS) of the Admin Console to create exemption records. The customer code on the certificate in ECMSHoverTT.png needs to be the account name in Accounting Seed for Salesforce.
  • Use an entity/use codeHoverTT.png or exempt entity use type at the account level.
  • Use the customer's tax registration number, called the Exemption Number.

Exempt customers from tax with their exemption number

  1. In Accounting Seed for Salesforce, go to Accounts.
  2. On the Accounts page, select customer and click Edit.
  3. Go to Account Detail and type the Exemption Number.
  4. Click Save.

Exempt customers from tax with entity/use codes

For information on available entity/use codes, see exemption reason matrices for US and Canada.

  1. Next to the Exempt Entity Type field, click the magnifying glass icon.
    SFAS - exempt customers from tax using entityuse codes 1.png
  2. Type the entity use type in the search field and click GO. See the complete list below.
    SFAS - exempt customers from tax using entityuse codes 2.png
  3. In the Search Results, select the Exempt Entity and save the account. Now when you calculate sales tax under Billings, AvaTax will calculate $0 sales tax, because this customer is exempt.
    SFAS - exempt customers from tax using entityuse codes 3.png