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How can I make a customer exempt or taxable for the same item?

Overview

I have one customer who is taxable and not taxable based on what project they are ordering parts for. There are no specific parts and they might order one taxable part and one non-taxable part on the same order. I am wondering if there is a way to separate the sales tax by line item. We do not use system tax codes.

Environment

Avalara Avatax

Resolution

  • In order to maintain taxability for the same item you will need to either maintain that on a case by case basis via your accounting system (ERP) during the invoicing process, or by having a separate item for each way you would like it to tax:
    • Item A TX: mapped to Tax code for taxable
    • Item A NON: Mapped to tax code for exempt
  • ​It is only possible to tax items differently if they have a different tax code or if you use line level entity use codes, which is only possible in certain accounting systems