You are reviewing the Exemption Detail by Jurisdiction Report and want to know how this information is pulled and if there is any overlap between section 1, 2, and 3.
- The report shows "exemptions" in that it is showing you the value of sales where there was no tax, there is no overlap between the sections because they each detail a different exempt reason and we only apply one to each line of a transaction:
- SECTION 1: EXEMPT SALES (Entity and Use based exemption) - CUSTOMER was exempt because the customer had an exemption on file for this jurisdiction (Organization > Exemptions in the admin console) OR there was an Entity Use Code OR there was an Exemption number used on the sale
- SECTION 2: NON TAXABLE SALES (Product and Services) - ITEM was non-taxable because the tax code used was not taxable in that jurisdiction
- SECTION 3: NON TAXABLE SALES (No Nexus Jurisdictions) - JURISDICTION is not selected in Nexus (Organization > Nexus), so Avalara did not calculate tax.
- Use this report to view the different reasons for exempt and non-taxable sales details. This report captures a detail view of the country and region for the selected filters. In the HTML file format, this report allows you to drill down into certain fields for further research.