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Why is a Hawaii exemption not calculating 0.5 percent?

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Overview

Shipped a product to HI for exempt customer, expecting 0.5% tax but is higher than expected.

Environment

Avalara Avatax
Hawaii

Resolution

  • This indicates the exemption certificate is not being applied to the sale:
    • Check the date > Exemption Certificates will only exempt between the start date and the expiration date
    • Check the customer number > Customer code must match exactly to apply to the sale
    • Check that exemption is not Single Use, or if single use, the PO matches PO or Invoice number

Note: Federal Government and Foreign Diplomat exemptions are applied as fully exempt in Hawaii, so there will be no tax with entity use code A: Federal Government and/or D: Foreign Diplomat.