You or one of your customers received a temporary exemption in Puerto Rico, per the information below:
"On November 8, 2017, the Governor of Puerto Rico issued Executive Order No. OE-2017-068. The Executive Order mandated the Secretary of the Treasury to exempt certain merchants from the collection of the estate and municipal sales tax. The exemption was ordered to begin on November 20, 2017 and end on December 31, 2017. Merchants with annual sales below one million dollars are eligible for the exemption. Eligible customers will receive a copy of the certificate via their SURI account under the "Exemptions" tab."
You would like to know how to apply this exemption in AvaTax.
- To prevent AvaTax from calculating any Puerto Rico taxes, adjust your nexus settings.
- Enter an end date of 11/19/2017.
- Click the check box to the left of Puerto Rico, enter a Begin Date of 01/01/2018 and an End Date of your choosing, and Save.
- Now nexus is enabled between your original Begin Date and 11/19/2017, and again starting from 01/01/2018. Transactions dated between 11/20/2017 and 12/31/2017 will have no tax calculated because nexus is not enabled for those dates.
- You can verify this by using the Tools > Basic Tax Calculator utility to test calculation on a Puerto Rico address with document dates of 11/19/2017, 11/20/2017, and 1/1/2018. The 11/20/2017 calculation should return 0.00 tax, but the other dates should show a tax calculation.