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Avalara Help Center

How can I make a customer taxable in a city, but exempt in the state?

Overview

You have a customer who is exempt from tax in Colorado, but must pay tax in Denver.

Environment

Avalara Avatax

Resolution

  • Create a tax rule making their exemption type (entity use code) taxable (Exempt = No) in the Admin Console.

 

Note: We recommend using a custom entity use code so that the rule will not affect other customers. You must also make a rule that makes the customer entity use code exempt at the state level.