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How do i handle a customer with mixed taxability?

Overview

We have customers who are eligible for the California partial tax but only on equipment for R&D, not supplies. 

Environment

Avalara Avatax

Resolution

  • Create an exempt entity rule, and select the customer exemption type in the Entity Use Code field:
    • Organization > Tax Rules > New > Select state> fill in fields, make sure to choose exenmpt entity rule and select the entity use code that matches your customer > Choose the tax code for the item they are not exempt for.
  • Please note: this will make that item taxable for ALL customers using this exemption reason.

 

 

 

 

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