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

Overview

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

Environment

Avalara Avatax

Resolution

• 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.