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Avalara Help Center

Why is my Hawaii exemption not working?


You're billing a customer in Hawaii and expect the transaction to have no tax, but the customer is not exempt.


Avalara AvaTax


  1. Check the tax rate on the transaction. If it's 0.5%:
  2. For tax higher than 0.5%, this indicates the exemption certificate is not being applied to the sale:
    • Check the date on the certificate - 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 for Single Use - Single use certificates require a PO or Invoice number
  3. ​To force the system to apply 0% tax