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Why is my exemption not applying to a new sale for the customer?

Overview

You have a tax exempt customer whose sales are suddenly being processed as taxable and you want to know why.

Environment

Avalara AvaTax

Resolution

  • The exemption must match all details of the transaction, review the exemption certificate in the Admin Console:
    • Go to Organization > Exemptions
    • Filter using the customer code that is on your transaction
      • The exemption must have the same customer code as is on your sale, if not there, create one
    • Confirm that the state where your sale is being taxed is listed
      • Certificates only exempt the state(s) listed
    • Click ">" and check the Signed/Effective date of your exemption cert, it must be on or before the docdate of your transaction
      • If the Signed/Effective date is after your transaction date, it will not apply
    • Click on the customer code to see the Certificate Details > check that the exemption is Blanket
      • If Single is checked, it will only apply to that PO or Invoice number

 

Note: If the customer number is different on the new sale, you can either change the customer number of the sale, or add the new customer to the existing exemption.