Tax Exempt Customers - Entity Use Codes

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Introduction

You can mark customers as tax exempt, based on their email. You must insert the tax exempt customer into Avalara, then pass the email as the customer code.

Insert Tax Exempt Customer into Avalara

Here are the steps:

  1. Login to your admin.
  2. On the top menu, click organization > exemptions.
  3. Click new.
  4. Add a new record by making the customer code and customer email the same. Contact Avalara for specific details on completing the form: 

Online Store Entity Use Code File

Since your online store has no interface to add these tax exempt customers with their code and federal tax ID, you must edit a text file in the root directory of your website. To enable entity use codes, follow these steps:

  1. Open the file ~/EntityUseCodeXMLFile.xml
  2. A sample customer has already been added.
  3. Add a customer like this:

<Customers>

<Customer>
    <Email>support@jmawebtechnologies.com</Email>
    <EntityUseCode>A</EntityUseCode>
    <FederalTaxID>271234321</FederalTaxID>
  </Customer>

 

</Customers>

Once you have saved your changes, your website will send the entity use code and tax ID to Avalara. 

If you check your log at /avalaralog.txt, you'll see this entry:

5/21/2015 10:35:19 AM : CUSTOMER SHIPING ADDRESS SENT TO AVALARA: 123 Main St  MA United States
5/21/2015 10:35:19 AM : SHIPPING FROM ADDRESS SENT TO AVALARA: CruiserWorks Motorcycle Gear LLC 1355 Long Ferry Rd NC US
5/21/2015 10:35:19 AM : GETTING NEW TAX RATES. SESSION STATE IS EMPTY. SYSTEM WILL USE RATES IN SESSION, UNLESS CART CHANGES.
5/21/2015 10:35:19 AM : Customer Code: 271234321, Entity Use Code A
5/21/2015 10:35:20 AM : Response from Avalara: Tax Rate 0.0625 Tax Calculated 0 Tax Exempt 10 Tax Code DC010000
5/21/2015 10:35:20 AM : Response from Avalara: Tax Rate 0.0625 Tax Calculated 0 Tax Exempt 10 Tax Code P9999999
5/21/2015 10:35:20 AM : Address validation setting has been disabled. No address validation shall be performed.
5/21/2015 10:35:20 AM : AVALARA TAX RATE: 0
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