Why is the exemption no. field not working for Canada?
Overview
We have been exempting our customers by entering an exemption number in the Exemption No field. However this process does not exempt our Canadian customers.
Environment
Avalara AvaTax
Resolution
- The issue here is that the Exemption No. field defaults the transaction to Entity Use Code L)Other, which is not a valid exemption in Canada
- You may create an Exempt Entity Tax Rule, making Entity Use Code L)Other exempt in Canada
- Or use entity use code C)Tribal instead of (or in addition to) the exemption number