After you enable ECMS, add ECMS exemption certificate entries to AvaTax.
If this is your first time using ECMS to exempt customers from sales tax, collect a list of exempt customers with their customer codes, address details, and certificate information. After you add all of your exempt customers to AvaTax, run an Exemption Certificate Export Report and compare the results with your list of exempt customers to confirm you created an ECMS exemption certificate entry for each of them.
After you add them, manage ECMS exemption certificate entries when you need to edit or revoke them.
Manually add an exemption certificate entry in AvaTax
- On the Organization tab, click the Exemptions button for a company.
- On the Exemptions screen, click New.
- On the New: Exemption Certificate screen, fill in the following fields, and then click Save:
Field Action Customer Code Enter a unique code referencing your customer. Typically, this is the same as the unique customer identifier used in your accounting software. Customer Name Enter the name of your customer. Country, Address 1, Address 2, Address 3, City, Region, Postal Code Enter the primary business address of your customer, including the country. Certificate Type Select the type of exemption certificate for this entry. Invoice / PO number If you chose Single for the Certificate Type, enter the number of the invoice or purchase order associated with this exemption certificate entry. Issuing Country Select the country that issued the exemption certificate. Effective Date
Enter the issue date of the exemption certificate.
This date can affect how AvaTax processes transactions for the customer, because transactions occurring before the date entered may not be exempt.
Add Add an exemption certificate entry detail. Business Type
Select the business type that best matches your customer.
If you select Other, the Business Type Description field is also required.
Business Type Description Enter a description of the type of business in which your customer is engaged. Exemption Reason
Select the specific reason your customer is exempt. Not all exemption reasons are applicable for all business types in all regions.
If you select Other, the Exemption Reason Description field is also required.
Exemption Reason Description Enter a description of the exemption reason.
Add an ECMS exemption certificate entry detail
Exemption certificate entry details record and display information for each issuing region.
- You must add at least one exemption certificate entry detail before saving the exemption certificate entry.
- You must add an exemption certificate entry detail for each issuing region, even when using one exemption number for multiple regions.
To add an ECMS exemption certificate entry detail:
- On the New: Exemption Certificate page, in the Certificate Information section, click the Add button .
- Fill in the following fields:
Field Value Issuing Region The region (state, province, or territory) that issued the exemption certificate. Exemption No The unique identifier of an exemption certificate.
If the issuing region is an SST state, enter any of the following in place of the exemption number:
- Taxpayer ID: The unique identification number assigned to your customer for tax reporting.
- FEIN: The federal employee identification number (FEIN) of your customer.
- Driver's License Number: The driver's license number for the individual claiming exemption.
- Foreign Diplomat Number: The number assigned to a representative of a foreign (non-US) government agency residing in the U.S.
Exemption No Type Type of identifier displayed in the Exemption No field. End Date Optional The end date forces an exemption certificate entry to expire on a particular date. The end date is optional and defaults to 12/31/9999 if not entered. While the effective date applies to each issuing region, the end date allows you to specify individual end dates for the exemption certificate entry in each issuing region.
- Click the Save button.
- Repeat these steps for each issuing region.
Import exemption certificates
Use an .xls, .xlsx, or .csv file to upload multiple exemption certificate entries directly into AvaTax. Batch importing allows a combined line total of 100,000 lines in each import file.
Format the exemption certificate import template
In the import file, you must use the column heading labels exactly as shown below. The templates in the Import Exemption Certificates Toolkit use the correct column headings. The individual data fields must conform to the type and size restrictions listed in the table. The Use column tells whether a column is required in the import file.
|Column||Column heading||Type (size)||Use||Description|
|A||ECMS Cert ID||Integer||Required||
A unique number AvaTax uses to differentiate the certificates in your import file. This value is used to identify records that fail to import. If you leave this field blank, AvaTax may assume all entries in your spreadsheet are one large certificate. We recommend using sequential numbering for this field.
This number is not imported as the final certificate ID; AvaTax assigns a unique value to each imported record
|B||Issuing Country||Text (2)||Required||The country that issued the exemption certificate.|
|C||Issuing Region||Text (2)||Required||
The two-character abbreviation of the region (state, province, or territory) that issued the exemption certificate.
You can't add more than one region to this field. Add a new row to your spreadsheet for each issuing region, even if multiple regions use the same exemption number.
Use CA for Canada (GST) to create country-level exemptions when Canada is the issuing country.
|D||Exemption No||Text (50)||Required||The exemption certificate number associated with the issuing region. If you include dashes in the number, AvaTax removes them when they're imported.|
|E||Exemption No Type||Text (50)||Optional||The type of exemption number. If this field is blank, AvaTax treats it as the taxpayer ID.
TIN - Exemption number or taxpayer ID
FEIN - federal employee identification number
DLN - Driver's license number
FDN - Foreign diplomat number
|F||Eff Date||Date (10)||Required||Effective date of the exemption certificate in mm/dd/yyyy format.|
|G||End Date||Date (10)||Required||Expiration date for the exemption certificate in mm/dd/yyyy format.|
|H||Customer Code||Text (50)||Required||Unique customer code. This is matched with the customer vendor code during tax calculations to locate an exemption certificate entry.|
|I||Cert Type||Integer||Required||Type of certificate:
0 = Blanket certificate
|J||Invoice/PO No||Text (50)||
Purchase order or invoice number.
Required if Cert Type = 1.
|K||Business Type||Integer||Required||Type of business:
1 = Accommodations and food services
2 = Agricultural, forestry, fishing, and hunting
3 = Construction
4 = Finance and insurance
5 = Information, publishing, and communication
6 = Manufacturing
7 = Mining
8 = Real estate
9 = Rental and leasing
10 = Retail trade
11 = Transportation and warehousing
12 = Utilities
13 = Wholesale trade
14 = Business services
15 = Professional services
16 = Educations and healthcare services
17= Nonprofit organization
18 = Government
19 = Not a business
20 = Other (requires Business Type Desc)
|L||Business Type Desc||Text (255)||
Description of business type.
Required if Business Type = 20
|M||Exemption Reason||Text (1)||Required||Reason for exemption. If an exemption reason is only applicable in one country, that country's name is displayed beside the exemption reason.
A = Federal government (United States)
B = State government (United States)
C = Tribe / Status Indian / Indian Band (both)
D = Foreign diplomat (both)
E = Charitable or benevolent org (both)
F = Religious org (both)
G = Resale (both)
H = Commercial agricultural production (both)
I = Industrial production / manufacturer (both)
J = Direct pay permit (United States)
K = Direct mail (United States)
L = Other (requires Exempt Reason Desc) (both)
M = Educational org (both)
N = Local government (United States)
P = Commercial aquaculture (Canada)
Q = Commercial fishery (Canada)
R = Non-resident (Canada)
|N||Exempt Reason Desc||Text (255)||
Description of exemption reason.
Required if Exemption Reasons = L
|O||Customer Name||Text (100)||Required||Name of the customer on the exemption certificate.|
|P||Address 1||Text (50)||Required||Address line 1 for the customer on exemption certificate
All address information should identify the customer’s primary business address.
|Q||Address 2||Text (50)||Optional||Address line 2 for the customer.|
|R||Address 3||Text (50)||Optional||Address line 3 for the customer.|
|S||City||Text (50)||Required||City name for the customer.|
|T||Region||Text (3)||Required||The two- or three-character region (state, province, or territory) ISO code.|
|U||Postal Code||Text (10)||Required||ZIP or postal code for the customer.|
|V||Country||Text (2)||Required||The two-character country abbreviation for the customer. If this field is blank, AvaTax assumes US.
If you're importing exemption certificates, the two-character country abbreviation is required. A list of supported abbreviations for other countries are found on the ISO website.
Import the template file
To add multiple exemption certificate entries at once:
- On the Tools tab, click Import Data.
- On the New: File Import screen, from the Type list, select Exemption Certificates.
- To use the Import Toolkit, click Download, extract the files, and fill in one of the blank templates.
- On the New: File Import screen, click Next, and then select the company the items are for.
- Click Choose File, browse to select the file you want to import, and then click Open. Import files with .xls, .xlsx, and .csv extensions only.
- In AvaTax, click Upload. The file uploads and the Import Status screen opens, displaying the status of the import.
Troubleshoot ECMS Imports
If the Status column for the file displays Error, fix any errors before you try again.
To fix import errors:
- On the Import Status screen, in the File column for an imported file, click the Error hyperlink to download the file.
- Open Error.csv and view the error message in the last column for each record that failed to import.
- Make the necessary corrections to the records, and then delete the last column (the one with error messages).
- Save the file with a new name and import it.
Export exemption certificate data
When you need to review your ECMS data, export an .xls, .xlsx, or .csv file of the exemption certificates you've uploaded to your account.
The Exemption Certificates export report shows one row of data for each exemption certificate entry exported.
Generate an exemption certificate report
- Go to Reports > Standard Sales Tax Reports > Export Reports.
- Under Select Report, click Exemption Certificates.
- Customize the scope of your report using the filter criteria on the right. At least one company must be selected in order to generate the report.
- From the Company list, select the
from which to pull for the report.
- To use transactions from all companies, select All.
- To select more than one company, hold Ctrl and click each company name.
- From the Issuing Country list, select the country that issued the
- From the Issuing Region list, select the region that issued the exemption certificate.
- From the Exempt Cert. Status list, select the types of exemption certificate entry statuses to include in the report.
- From the Applied list, select entries to include in the report based on whether exemptions have been applied to a transaction.
- In the Customer Code field, type a unique code referencing your customer. Typically, the code is the same as the unique customer identifier used in the accounting, ERP, e-commerce, m-commerce, or POS application.
- Next to Columns to Export, select a list of the columns to export for the report. Select All to export all columns or select specific columns to include in the report.
- Click Generate and then click Start Processing Download in the window that appears. Your download will begin once it has been processed.