Add exemption details for a customer in AvaTax
This article applies to:AvaTax
After you add a customer to AvaTax, add details about the customer's exempt status. Alternatively, import customers and exemption details at the same time.
Before you begin
You may need to:
- Add a customer to AvaTax if you haven't already.
- View default exemption settings in AvaTax and make changes if needed.
- Customers participating in Avalara's SST program must include Business Type and Description information for each exempt customer. See SST Exemption Requirements.
Steps
- In AvaTax, select Exemptions.
The Customer Exemptions page opens. - Find your exempt customer in the list and select Add an Exemption.
- Enter the customer's exemption details, and then select Next.
- Issuing Country - The country where the exemption is issued.
- Business Type - Certain businesses are exempt from tax, depending on state laws.
- Business Type is required if you're participating in Avalara's SST program. See SST Exemption Requirements.
- Business Description - Required when Type is set to Other.
- Entity Use Code - Codes that exempt businesses from tax, based on the latest government laws.
- Exemption Description - Only required if you select Other/Custom for Entity Use Code.
- Issuing Regions - The state or region where your customer is exempt from sales tax for the above Business Type and Entity Use Code.
- Regions can only be added if your selected Entity Use Code is valid there. Refer to the Exempt Reason Matrix for a list of reasons by region.
- Add exemption information based on the Entity Use Code and State or Region you selected.
- Exemption Number - A unique number found on a customer's exemption document.
- Exemption Number Type - Typically an exemption number or taxpayer ID. Certain exemptions may require a Foreign Diplomat Number, Driver's License, or FEIN.
- Effective - The beginning of the exemption period.
- Expiration - When the exemption no longer applies to the customer.
- Blanket vs Single - Apply the exemption to all transactions, or only transactions with a specific invoice or PO number.
- Select Request a Certificate or Upload a Certificate to attach a PDF file to the customer record.
- Request - An email is sent to your customer with a secure link to complete and return the right exemption document.
- Upload - When you have a digital copy of your customer's exemption document.
- Select Save.
Exemptions are active and applicable in AvaTax based on the effective and expiration dates. Select View Exemptions to review a customer's exemption details.