You want to know how to use the Exemption Certificate Options settings to best fit your needs.
- In the Admin Console, go to Settings > Exemption Certificate options and select the Enable Exemption Certificate Management System checkbox
- Geographical settings (United States and Canada) control the behavior:
- Ignored: Exemption certificates within that country have no affect tax calculation. Creating a certificate for a specific customer won't result in an exempt tax result.
- Optional: Any transaction which has an exemption certificate applied to it results in an exempt tax amount. However, if any other exemption type is applied to a transaction (i.e. tax rules, entity use codes and tax exempt values) the transaction still result sin a zero dollar tax amount. This occurs whether or not an applicable exemption certificate has been created.
- Required: Any transaction which has an exemption certificate applied to it result in an exempt tax amount, but other exemption types won't result in a zero dollar tax calculation. When using this setting, the only way to force an exempt amount on a transaction is by creating an applicable exemption certificate. This setting is common for users who registered in the Streamline Sales Tax program (SST). You can't exempt your customers using entity use codes or exemption numbers on sales.
- Exemption Override Code: TAXABLE - use this entity use code on a transaction to override an exemption certificate profile.
Note: We recommend selecting Optional unless you want to require an exemption certificate profile to exempt a sale. If you choose Required, customers will only be exempt after you create an exemption certificate profile in the Admin Console using ECMS or CertCapture.
For more information, see enable ECMS.