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In what order are overrides and exemptions handled?

Overview

You want to the the order in which exemptions and overrides are applied by Avalara AvaTax for Communications License  and which have precedence.

Environment

Avalara AvaTax for Communications License

Resolution

  • Overrides and exemptions are applied in this order:

1st  -  UPR overrides.
2nd - OVR overrides have precedence over UPR overrides.
3rd  -  API overrides are applied and have precedence over OVR and UPR overrides.
4th  -  Transactional Level Exemptions and Specified Exemptions are applied after the OVR. They are co-compatible and override API, OVR and UPR.

Note: Level exemptions are only applied if the logic for the tax indicates that level exemptions are allowed.

  • For example, an override for Excise Tax (TT 5) in New York at the state level is applied as follows:

1st  -  Any changes in the UPR would be applied to all transactions.
2nd - Any changes in an OVR would override the UPR and be applied to all transactions.
3rd  - Any changes in an API override would override both the OVR and UPR and would be applied to the specific transaction.

Any state-level exemptions for NY or specified exemptions for TT 5 for NY would be applied to the specific transaction.