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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:


  1. In AvaTax, select Exemptions.
    The Customer Exemptions page opens.
  2. Find your exempt customer in the list and select Add an Exemption.
  3. 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 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.
  4. 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.
  5. Optionally, select Request a Certificate or Upload a Certificate to attach a PDF copy of the customer's exemption certificate.
    • 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.
  6. 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.

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