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Why is our exemption certificate not applying?


There is a tax exemption form for a customer that is not making their sales exempt.


Avalara AvaTax


  • The exemption must match all details of the transaction, review the exemption certificate in the Admin Console:
    • Go to Organization > Exemptions
    • Filter using the Customer Code that is on your transaction
      • The exemption must have the same customer code as is on your sale, if not there, create one
    • Confirm that the state where your sale is being taxed is listed
      • Certificates only exempt the state(s) listed
    • Click ">" and check the Signed/Effective date of your exemption cert, it must be on or before the DocDate of your transaction
      • If the Signed/Effective date is after your transaction date, it will not apply
    • Click on the customer code to see the Certificate Details > check that the exemption is Blanket
      • If Single is checked, it will only apply to that PO or Invoice number
    • Confirm the exemption reason is correct. 
      • Depending on the state/province the selected exemption reason may or may not be exempt.
    • Check to see if there are any custom tax rules changing the behavior of the entity use code in question.
      • Check to see if you duplicated the Avalara default entity use code taxability with an Exempt Entity tax rule. This will override the Avalara system.  
        • To find these: Organization Tab -> Custom Tax Rules.
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