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Exempt Customers from Sales Tax

This article applies to:Avalara AvaTax for Salesforce

There are three ways to exempt customers from tax in AvaTax 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 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 entity/use codes

Before you assign an entity/use code to a customer, ensure that the Enable Entity/Use Code is enabled in the Avalara settings page. To exempt a customer by assigning entity/use codes, follow these steps:

  1. Go to Accounts and click on the account you want to assign an entity/use code.
  2. In the Account Details page, click Edit.
  3. Next to Entity/Use Code, type the applicable code. This code is sent to AvaTax only if the Enable Entity/Use Code is enabled in the Avalara settings page.
  4. Click Save.

    EntityUseCode.png

Exempt customers from tax with their exemption number

In Salesforce Opportunity, the customer is exempted if the Non-Taxable field in Opportunity is enabled. Salesforce sends the Account Name as the exemption number to the Admin Console if the Exemption Number isn't added in the customer's Accounts.

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

Here's an example of an exemption number in a customer's Account Detail. 

  • Sales tax calculated for a transaction:

  • Transaction in the Admin Console: