You want a transaction with a destination address in Canada to show as being fully exempt.
- You have a few options to make the sale exempt:
- Use Entity Use Code C) 'Tribal' on your transaction (It is exempt everywhere in Canada)
- Create an exemption for the customer, using the Tribal exemption reason (entity use code C)
- Ensure Canada and the Province are added to the exemption
- Create a Product Taxability Tax Rule making the tax codes of the products non-taxable in Canada and the Province,
- This processes the sale as non-taxable, rather than a sale to an exempt customer
- Create an Exempt Entity Tax Rule making the Entity Use Code of your choice tax exempt in Canada and the Province
Note: We recommend processing a sale as exempt only if you are comfortable providing proof of exemption, etc. in case of audit.