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What are the three sections of the Exemption Detail report?

Overview

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.

Environment

Avalara AvaTax

Resolution

  • 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.