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Why is my customer not being charged tax when the tax code is taxable?

Overview

I have a customer being invoiced for Tax Code SM020200, they are not being charged tax when they should be.

Environment

Avalara Avatax

Resolution

If the customer is associated with an exemption certificate they will be considered exempt from all tax.

It is possible to make a rule that tells a specific exemption reason to be taxable for a specific tax code and state, but please note that it will affect ALL customers that use that exemption reason in that state who purchase items mapped to that tax code.