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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.

Before you begin

You may need to:

Steps

  1. Find your exempt customer in the list and select Add an Exemption.
  2. 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.
  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. 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.
  5. 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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