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Avalara Help Center

Why is this reseller being taxed in Hawaii?

Overview

You have entered a Resale exemption certificate and expect your customer to be tax exempt in Hawaii. However, tax is still being calculated

Environment

Avalara AvaTax

Resolution

  • In Hawaii most Resellers will be partial exempt, not fully exempt.
    • You should see Hawaii transactions for Resellers taxed at a 0.5% State rate.
  • If you need to fully exempt your Resale customer, you will need to use the exemption reason A)Fed Govt or D)Foreign diplomat