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Avalara Help Center

How are non-taxable transactions reported in TrustFile?

Overview

You have non-taxable transactions and want to know how they will be reported on your returns in TrustFile.

Environment

TrustFile

Resolution

Since TrustFile relies on automation to create returns, all non-taxable sales are treated the same regardless of reason for no tax being collected. When the transactions are imported into TrustFile they will be listed as an Adjustment on the Jurisdiction liability report and added onto the return as a non-taxable sale. How it is reported on the return will vary state-by-state as some states do not have non-taxable sales broken out by type and others do.

If you require your non-taxable sales to be reported under a specific classification; such as tax exempt, wholesaling, etc. we are unable to do so in TrustFile as there is no way for the transactions to be marked as such within the automation. They will be added as general non-taxable sales.