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How do I exempt taxes in Canada for my exempt customers?

Overview

You would like to know how to exempt Canadian tax for your customers.

Environment

Avalara AvaTax

Resolution

  • Currently, the only way to exempt customers of tax in the country of Canada is by using the exemption reason of Tribal Government, or entity use code C.
    • You will have to either pass this Entity Use Code on your transaction
    • Or, you will need to enter an exemption certificate with the exemption reason of C)Tribal
  • To exempt GST/HST, but still charge the Provincial Taxes create, an exemption specifically for Canada
  • To exempt PST/QST, but still charge GST/HST, create an exemption specifically for the affected province(s)
  • To exempt all Canadian taxes, create an exemption for Canada and another for the affected province(s)
  • To learn how to create an exemption in CertCapture, click here.
  • To learn how to create an exemption in ECMS, click here.

 

Note: While the only way to exempt tax in the country of Canada is by using the exemption reason of Tribal Government, or entity use code C, each province has their own exemption reasons. Please review the Exemption Reason Matrices for this information. These matrices will update according to the taxing jurisdiction updates.