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Avalara Help Center

Why are my exempt customers taxing?

Overview

Your customers with exemption certificates on file is still charging taxed

Environment

Avalara CertCapture

Resolution

  • Confirm that the Certificate is in the Avalara Admin console
    • Click on the "Organization" tab
    • Click on the company's name in question
    • Click on the "Exemptions" sub-tab (Below Reports)
    • Search for the exemption certificate
  • If the Certificate is not in the Avalara Admin console
    • In Avalara CertCapture
      • Click on the Search Tab
      • Choose Certificate Search
      • Click on the Cert ID
      • Go to the History Tab
    • Correct any errors that are shown in the History Tab
      • If it is a multi-Jurisdiction certificate view the first state in the listing in alphabetical order
  • If the Certificate is in the Avalara Admin console
    • Verify that the address being sent over as the destination address matches the state on the exemption certificate. 
    • Confirm the date on the transaction falls in the date range the exemption certificate applies.
    • Confirm that the Customer Code on the transaction matches exactly with the exemption certificate
    • Make sure you don't have a custom tax rule making entity use code taxable
  • Confirm that the entity use code being used is exempt in the state
  • Confirm that the exemption certificate settings isn't set to ignored
    • In the Settings Tab
    • Under Options Choose "Exemption Certificate Options"
    • United States and Canada should be set to Optional or Required