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Options for exempting customers

This article applies to:Avalara AvaTax Update

There are different ways to manage tax-exempt customers and exemption certificates depending on how many exempt customers you have.  If your business application doesn't provide a way to manage exempt customers, consider the following options:

Exemptions

Exemptions is included with AvaTax.

  • Store up to 25 customer exemption certificates.
  • Exempt purchases from sales tax by associating exemption information with your customer.

CertCapture

CertCapture is the most comprehensive solution for managing exemption certificates. However, it is an additional product that must be purchased separately.

Exemption certificate numbers or entity use codes

Keep track of tax-exempt customer purchases on a case-by-base basis. This works best when you have only a few tax-exempt customers and you're not using Exemptions or CertCapture. If you choose this option, it's up to you to keep organized records of all exempt purchases.

  • Enter your customer's exemption certificate number in the transaction you send to AvaTax.
    AvaTax exempts the customer purchase from tax.
  • Enter an entity use code in the transaction you send to AvaTax.
    AvaTax exempts the transaction as long as the code is valid for the region where the transaction takes place.
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