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Why is my customer being charged tax when they're exempt in Netsuite?

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Overview

A customer is being charged tax, but they are exempt in Netsuite.

Environment

Netsuite

Resolution

  • There are two ways to exempt a customer in Netsuite, confirm settings match for the method you use:
    • Using the Entity/Use Code field:
      • Confirm the entity use code is on the customer:
        • Lists > ​Relationships > Customers > Customer > Edit > Address > Entity/Use Code
      • ​To add a code go to AvaTax > Setup > Entity Use Codes > New  > fill in the  Entity/Use Code ID and Description > click Save > then add to the customer using method above
    • Using the Taxable checkbox:
      • Confirm the Taxable checkbox is unchecked:
        • Lists > ​Relationships > Customers > Customer > Edit > Financial > Tax Information
      • ​​Unchecked, a call will still be made to Avalara but the tax will come back as zero since the customer will be flagged as exempt.
      • Checked, tax will calculate normally.
  • Re-select the customer on the transaction to ensure the updated customer information applies
    • ​Select any other customer, then select the correct customer and Save