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How do I handle partial exemptions?

Overview

You want to know how to make a customer partially exempt in AvaTax.

Environment

AvaTax

 

Resolution

  • Some states have partial exemptions for exemptions reasons. These are built in by default. 
    • For example, industrial is partially exempt in California and Alabama. See Exemption Reason Matrix for more information.
  • If the desired rate doesn't exist in our system because it is a special rate you can create custom rules. 
    • Create an Exempt Entity tax rule for that particular exemption type to make it taxable in the desired state
    • Create additional rules to make them taxed in a special way using a Base Override, Rate Override or Taxability rule (Organization > Tax Rules > New)

Next steps

For more information, read exempt customers from sales tax.