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Exempt Customers from Sales Tax

This article applies to:Avalara AvaTax for Sage 50

Exemptions are handled at the customer level in AvaTax for Sage 50. This information is sent to AvaTax as part of the calculation process. You can either flag a customer as exempt or use an entity/use codeHoverTT.png.

Exempt customers

To flag customers as exempt, follow these steps:

  1. To access the Customer Cart, go to Lists > Customers and Sales > Customers.

  2. Click the Customer Name from the list.

  3. On the Sales Info tab, in the Resale Number field, type the exemption number.

  4. Click Save.

Assign an entity/use code

Entity/use codesHoverTT.png let you exempt a transactionHoverTT.png and create custom reasons and custom exemption profiles. This is useful for partially-exempt customers. For more information about available entity/use codes, see exemption reason matrices. To assign an entity/use code to a customer, follow these steps:

  1. Click Configuration.

  2. In AvaTax Configuration, click Select Company and select your company.

  3. Double-click the customer's name.
  4. Select the Entity/Use Code.

  5. On the Entity/Use Codes tab, click Synchronize with Peachtree.

  6. Click OK.