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Options for exempting customers in Microsoft Dynamics 365 Finance and Operations

If you regularly sell to tax-exempt customers, you need to consistently exempt their purchases. If you don't already have a way to exempt customers, here are the options available to you through Avalara.

Use CertCapture

CertCapture is the most comprehensive solution for managing exemption certificates and other compliance documents. This product must be purchased separately. Contact your Account Manager for more information.

Use CertCapture with or without AvaTax to manage compliance documents:

  • Store an unlimited number of your customers' exemption documents in one place
  • Automatically exempt purchases from tax when appropriate
  • Send mail or email campaigns to ask your customers for certificates, and then track their progress

Once you set up CertCapture, you can exempt customers from sales tax using CertCapture from Microsoft Dynamics 365 Finance and Operations.

Use Exemptions

Exemptions is included with AvaTax. Exempt purchases from tax by associating exemption information with customer records.

To activate Exemptions in AvaTax, select Exemptions and then select Get Set Up. For more information, see set up Exemptions.

In Microsoft Dynamics 365 Finance and Operations, make sure the customer number on your exempt customer's record matches the customer number you entered when you were creating the exemption in Exemptions.

Add an exemption number to a customer record

When you select the appropriate tax exempt number on a customer record in Microsoft Dynamics 365 Finance and Operations, AvaTax recognizes the customer as exempt. However, it does not store customer exemption information.

To store customer exemption information, use CertCapture or Exemptions.

Add an entity use code to a customer record

When you add an entity use code to a customer record in Microsoft Dynamics 365 Finance and Operations, AvaTax exempts this customer's transactions as long as the entity use code is valid for the jurisdiction where the transactions take place. However, it does not store customer exemption information.

To store customer exemption information, use CertCapture or Exemptions.