Skip to main content
Avalara Help Center

Why is my Hawaii exemption not working?

Overview

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

Environment

Avalara AvaTax
Hawaii

Resolution

  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