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Exempt Customer from Sales Tax

There are different ways to exempt customers from tax. You can flag them as exempt, use entity/use codes, or use CertCapture. AvaTax allows you to exempt customers using the Microsoft Dynamics GP exemption process. 

Exempt customers using CertCapture

To exempt customers using CertCapture, you need to do the following:

Create or select a customer

  1. Go to Cards > Sales > Customer.
  2. In the Customer Maintenance window, click Address.
  3. In the Customer Address Maintenance window, go to Additional and click CertCapture Create Customer.
  4. In the Create Customer Record window:
    1. Type all the required details for your customer.

      GP_Certs1.png

    2. To validate the address, click Validate.
    3. Click Send. The message "Customer successfully created" is displayed. Click OK.

      GP_Certs2.png

Initiate an exemption request

  1. Go to Cards > Sales > Customer.
  2. In the Customer Maintenance window, click Address.
  3. In the Customer Address Maintenance window, go to Additional and click Initiate Exemption Request.
  4. In the Exemption Certificate Request  window:
    1. Go to the Send Method section and select one of the options for communication. Click the link mentioned in the communication and complete the exemption certificate request process. 
    2. You can add a custom message. This field is useful for communicating instructions if you select the mode of communication as Fax.
    3. Click Send

      GP_Certs3.png

      The message 'The Exemption Certificate Workflow Request has been successfully generated. Tracking code is - xxxx-xxxxxxx' is shown. Click Ok.

      DAX_7certinitial_success.png

Retrieve certificate(s) status

  1. Go to Cards > Sales > Customer.
  2. In the Customer Maintenance window, click Address.
  3. In the Customer Address Maintenance window, go to Additional and click Retrieve Certificate(s) Status.
  4. In the AvaTax Exemption Certificate Status window, you can see the list of exemption certificates and their request status. Click Ok.

    GP_Certs4.png

    The Request stage can be any of the following options:

    • REQUESTINITIATED means that you have sent the email, fax, or letter to the customer.
    • CUSTOMERRESPONDED means that the customer has received an exemption certificate request and has responded to it by entering the wizard, but hasn’t yet faxed the certificate. 
    • CERTIFICATERECEIVED  means that the customer has faxed the certificate to Certs.

    The Request Status can be Open or Closed.

Retrieve certificate(s) 

  1. Go to Cards > Sales > Customer.
  2. In the Customer Maintenance window, click Address.
  3. In the Customer Address Maintenance window, go to Additional and click Retrieve Certificate(s).
  4. In the AvaTax Exemption Certificate Retrieve window:
    1. To download the certificate, click the following buttons and follow the steps on your computer for downloading a document.
      • To download the certificate in .png format on your local machine, click Get Certificate as PNG.
      • To download the certificate in .pdf format on your local machine, click Get Certificate as PDF.
    2. Click Close.

    GP_Certs5.png

Exempt customer from sales tax

To exempt customer from sales tax in AvaTax for Microsoft Dynamics GP, follow these steps:

  1. Go to Cards > Customer Maintenance and select a customer.
  2. In the Customer Maintenance dialog box, click Options.
    DGP_customer_maintenance.png
  3. In the Customer Maintenance Options dialog box, add the following details and then click Ok.
    • Tax Exempt 1: Type Exempt to exempt this customer from sales tax.
    • Tax Registration: Type the customer's tax registration number, know as BIN (Business Identification Number) sent by Microsoft Dynamics GP to AvaTax during tax calculation. This number is displayed in the Admin Console as the Buyer's VAT No

DGP_customer_maintenance_options.png

Assign entity/use codes to customers

For more information about available entity/use codes, see exemption reason matrices. To find this utility in the Customer Maintenance dialog box, follow these steps:

  1. At the top left of the Customer Maintenance dialog box, click Address ID.
  2. In the Customer Address Maintenance dialog box, on the Additional menu, click AvaTax Entity/Use Code.

  3. In the AvaTax Entity/Use Code dialog box, click the Search (magnifying glass) icon.

    DGP_CustomerMaintenance_EntityUseCode1.png
  4. In the AvaTax Entity Code Lookup dialog box, click any entity/use code, and then at the upper left, click Select.

    DGP_CustomerMaintenance_EntityUseCode2.png
  5. In the AvaTax Entity/Use Code dialog box, at the upper left, click Save.