You want to the the order in which exemptions and overrides are applied by Avalara AvaTax for Communications License and which have precedence.
Avalara AvaTax for Communications License
- Overrides and exemptions are applied in this order:
1st - UPR overrides.
2nd - OVR overrides have precedence over UPR overrides.
3rd - API overrides are applied and have precedence over OVR and UPR overrides.
4th - Transactional Level Exemptions and Specified Exemptions are applied after the OVR. They are co-compatible and override API, OVR and UPR.
Note: Level exemptions are only applied if the logic for the tax indicates that level exemptions are allowed.
- For example, an override for Excise Tax (TT 5) in New York at the state level is applied as follows:
1st - Any changes in the UPR would be applied to all transactions.
2nd - Any changes in an OVR would override the UPR and be applied to all transactions.
3rd - Any changes in an API override would override both the OVR and UPR and would be applied to the specific transaction.
Any state-level exemptions for NY or specified exemptions for TT 5 for NY would be applied to the specific transaction.