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Add exemption details for a customer in Exemptions

This article applies to:Avalara AvaTax Update

After you add a customer to Exemptions, add details about the customer's exempt status. Alternatively, import customers and exemption details at the same time.

Steps

  1. Find your exempt customer in the list and click Add an Exemption.
  2. Enter the customer's exemption details, and then click Next.
    • Issuing Country - The country where the exemption is issued.
    • Entity Use Code - Select the Entity Use Code (EUC) that applies to your customer. Entity Use Codes (EUCs) are letter codes that exempt businesses from tax based on government laws. They're tied to specific industries and exempt reasons. Your choices depend on the Customer Type you selected when adding the customer.
    • Exemption Description - Only required if you pick Other/Custom. This should describe the customer's exempt reason.
    • Issuing Regions - The state or region where your customer is exempt from sales tax.
  3. 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.
  4. Click 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.
  5. Click Save.

Result

Exemptions are active and applicable in AvaTax Update based on effective and expiration dates. Click View Exemptions to review a customer's exemption details.

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