AX 2012 :Entity Tax Code setup for Exempt Project Address

Overview

Our exemption status is based on the Project. Our Projects have many to one relationship with our Customers, i.e. many Projects to one Customer. So some Projects might exempt because they’re resellers and some are not.

Environment

Microsoft Dynamics AX

Resolution

Avatax AX connector only associate an Entity Use Code with a customer address. It does not associate with Project address. This is by design. 

Creating a custom tax rule can be resolved the issue.