If you need to exempt a Canadian customer from both federal GST and provincial tax (PST, QST, or HST), add multijurisdictional exemption details for the customer.
Before you begin
You may need to:
- In AvaTax, select Exemptions.
The Customer Exemptions page opens.
- Find your exempt customer in the list and select Add an Exemption.
- Select Canada in the Issuing Country field.
- Select one of the following exemption reasons in the Entity Use Code field:
- State Gov
- Tribal Government
These are the two entity use codes that exempt Canada (GST) tax. If your customer is not exempt from GST, you can select a different entity use code.
- Select Canada (GST) and any provinces where your customer is exempt from sales tax.
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.
- Select Next.
- Add exemption information:
- 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.
- 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.
A multijurisdictional exemption is created. Your customer is exempted from both Canada (GST) and provincial tax for the provinces you selected.