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Exempt customers from sales tax using an exemption number in Microsoft Dynamics 365 Finance and Operations

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.

AvaTax exempts all customers with an exemption number. If you're not using Exemptions or CertCapture, AvaTax only exempts transactions. It doesn't keep record of your exempt customers.

Steps

  • In Microsoft Dynamics 365 Finance and Operations, do one of the following:
    • To apply an exemption number to one customer, select the appropriate tax exempt number on a customer record.
    • To apply the same exemption number to multiple customers, make sure you've configured AvaTax to use invoice accounts for tax exemption, map the customers to an invoice account, and then enter the exemption number in the invoice account.

When you select the customer on a sales order, AvaTax applies the exemption number you entered.