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Why is my exempt customer in Dynamics GP taxing in Canada?


I've used taxexempt1 field in GP as I usually do and for some reason they're still calculating tax in Canada.


Avalara Avatax


  • The Taxempt1 field in Dynamics GP will use Exemption no field in Avatax. This field simply uses the entity use code L.
  • Entity use code L is not exempt at many province level.
  • The resolution here would be to create an exempt entity rule for code L)Other forcing it to be exempt at the province level.





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