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Exempt Customers from Sales Tax

There are different ways to exempt customers from tax. You can update the sales tax group, use entity/use codesHoverTT.png, or use CertCapture. AvaTax allows you to exempt customers using the Microsoft Dynamics NAV exemption process. Entity/use codes are AvaTax specific designations, identifying various categories of exempt customers. Each entity/use code is associated with exemption tax rules for each state indicating applicable exemption scenarios. An invoice or credit memo using an entity/use code to trigger a customer exemption also uses the entity/use code to classify transactions for detailed exemption reporting within the Admin Console. For more information about available entity/use codes, see exemption reason matrices.

Exempt customers with CertCapture

To exempt customers with CertCapture, you need to:

Create customer

  1. Go to Departments > Sales and Marketing > Order Processing > Customers.

  2. In the Customers window, you can either click Navigate > AvaCert > Create Customer or select a customer and then click AvaCert > Create Customer.
  3. In the Create Customer: Customer Card window:
    1. Add the relevant details. Ensure that you add the address details and the email address. 

      DNAV_AvaCert01.png

    2. To validate the address, click Validate Address.
    3. Click Create Customer. The message 'Customer successfully created' is shown. Click OK.

      DNAV_AvaCert02.png

    4. In the Create Customer: Customer Card window, click OK.

Initiate exemption request

  1. Go to Departments > Sales and Marketing > Order Processing > Customers.

  2. In the Customers window, you can either click Navigate > AvaCert > Initiate Exemption Request or select a customer and then click AvaCert > Initiate Exemption Request.
  3. In the Initiate Exemption Request: Customer Card window:
    1. To choose how to send a certificate request to a customer, select the Communication mode. Click the link in the communication and complete the exemption certificate request process. 
    2. You can add a custom message to the request. This field is useful for communicating instructions if you select the Communication mode as Fax
    3. Click Initiate Exemption Request.

      DNAV_AvaCert03.png

      The message 'Request for Exemption Certificate initiated successfully. Certificate tracking code is - xxxx-xxxxxxx' is shown. Click OK.

      DNAV_AvaCert04.png

    4. In the Initiate Exemption Request: Customer Card window, click OK.

Retrieve certificate(s) status

  1. Go to Departments > Sales and Marketing > Order Processing > Customers.

  2. In the Customers window, you can either click Navigate > AvaCert > Retrieve Certificate(s) Status or select a customer and then click AvaCert > Retrieve Certificate(s) Status.
  3. In the View - Certificate Status window, you can review a list of exemption certificates and their request status. Click Close.

    DNAV_AvaCert05.png

    The Request stage can be either 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 Departments > Sales and Marketing > Order Processing > Customers.

  2. In the Customers window, you can either click Navigate > AvaCert > Retrieve Certificate(s) or select a customer and then click AvaCert > Retrieve Certificate(s).
  3. In the Edit - Certificate Details window:
    1. On the Certificate Details tab, select the certificate.   
    2. To download the certificate, click the following buttons and follow the steps in your computer for downloading a document.
      • To download the certificate in PNG format, click Get Certificate as PNG.
      • To download the certificate in PDF format, click Get Certificate as PDF.
    3. Click OK.

    DNAV_AvaCert06.png

Add entity/use codes

You can add to or edit the existing list of entity/use codes HoverTT.png.

  1. In Microsoft Dynamics NAV on the left pane, click AvaTax and then click Setup.
  2. On the right pane, under Administration, click Entity/Use Code.
  3. In the Edit - Entity/Use Code Mapping window:
    • To add a new entity/use code, click New. 
    • To change the list of entity/use codes that come with AvaTax, click Edit.  
    • To restore the default list of entity/use codes that come with AvaTax, click Restore default values.

Map entity/use codes to customers

  1. In Microsoft Dynamics NAV on the left pane, click Utilities and on the right, under Administration, click Entity/Use Code Mapping.
  2. In the Edit - Entity Use Code Mapping dialog box, under Entity Use Code, select an entity use code, and then click OK.

    NAV2013_EditEntityUserCode2.png

Flag a customer as tax-exempt

  1. In Microsoft Dynamics NAV on the left pane, click Departments, click Sales & Marketing, and then click Sales.
  2. On the right pane under Lists, click Customers.
  3. in the Customers pane, click a customer.
  4. In the Edit - Customer Card dialog box, scroll down to the Invoicing pane.
  5. Next to Tax Exemption No, type the Exemption Certificate Number, and then click OK.

    NAV_FlagCustomerExempt1.png