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Options for exempting customers in QuickBooks Desktop

This article applies to:AvaTax for QuickBooks Desktop

If you regularly sell to tax-exempt customers, you need to consistently exempt their purchases.

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 add and request exemption certificates from QuickBooks Desktop.

Use Exemptions

Exemptions is included with AvaTax.

  • Store up to 25 of customer exemption documents in one place. Upgrade to CertCapture if you need to store more than 25 documents.
  • 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.

Add an exemption number to a customer record

When you add an exemption number to a customer record in QuickBooks Desktop, 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 QuickBooks Desktop, 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.

Before you assign entity use codes to customers in QuickBooks Desktop, enable entity use codes for transactions.

In QuickBooks Desktop, go to File > AvaTax > Preferences > Customer Exemptions and make sure the Use Entity Use Codes box is selected.

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