Add multijurisdictional exemption certificate details for a Canadian customer
This article applies to:AvaTax
If you need to exempt a Canadian customer from both federal GST and provincial tax (PST, QST, or HST), add multijurisdictional exemption certificate details for the customer. Multijurisdictional certificates must be created directly in the Avalara platform. They can't be imported on a spreadsheet.
Before you begin
You may need to:
- Add an exempt customer if you haven't already.
- View default exemption certificate settings in AvaTax and make changes if needed.
Steps
- In the Avalara Home page, go to Exemptions > Customers.
- Find your exempt customer in the list and select Add a Certificate.
- Select Canada in the Country field.
- Select a reason for the exemption.
- Refer to the Exempt Reason Matrix for a list of valid reasons by region.
- If you need to fully exempt the customer from GST and all provincial taxes, select Tribal Government.
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Tribal Government is the only entity use code that exempts Canada (GST) tax and all provincial taxes. You can select a different entity use code if your customer is not exempt from Canada (GST), or if they are exempt from GST but taxable at the provincial level.
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- Select regions covered by the certificate.
Region details appear once you begin selecting regions covered by the certificate. If a reason for exemption is not available in a specific region, it won't appear on the list.- To exempt all tax
Select Canada (GST) and all provinces in which you do business. - To exempt only the federal Canada GST rate
Select Canada (GST). - To exempt GST and HST
Select Canada (GST) and any of the HST provinces in which you do business: New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island. - To exempt PST/QST but still charge GST
Select the provinces that you want to be exempt, but do not select Canada (GST).
- To exempt all tax
- Add exemption information.
- Type of Exemption Number
Typically an exemption number or taxpayer ID. Certain exemptions may require a Foreign Diplomat Number, Driver's License, or FEIN. - Exemption Number
A unique number found on a customer's exemption document. - Effective
The beginning of the exemption period. - Expiration
When the exemption no longer applies to the customer.
- Type of Exemption Number
- Select Save.
Your customer is now exempted from both Canada (GST) and provincial tax for the provinces you selected.