Gotransverse Tax Management provides a way to exempt the needed billing accounts from either state or federal taxes. Tax Exemption functionality is implemented through Exemption Groups which specify the exemption information to be applied to the billing account. To configure your Tax Exemption Group, you have to associate it with tax exemption details. Once you configure an Exemption group, you can assign it to a billing account, which essentially defines a customer's tax exemption status.

Note: Tax Exemption requires integration with the Avalara Communication Tax Calculation Software. For more information, contact your goTransverse account manager.

To configure the Tax Exemption follow these steps:

  1. Create and set up a Tax Exemption Group.
  2. Associate the Tax Exemption Group with a billing account.

Integration with Avalara Communication

To configure a Tax Exemption Group, you have to associate it with needed Category Exemptions or Specific Exemptions. Exemption Categories are containers of Specific Exemptions which include details about the type of taxes which should be exempt.

Avalara Communication Tax Categories are represented by the Exemption Categories, and Avalara Tax Types are represented by Specific Exemptions that you add to set up your Tax Exemption group.

Avalara Communication Tax Category is a parent entity of Avalara Tax Types; in Gotransverse, this parent-child relation is preserved—Exemption Categories are parent of the Specific Exemptions.

  Avalara Communication Gotransverse
PARENT Avalara Communication Tax Category Category Exemption
CHILD Avalara Tax Types Specific Exemptions

Tax Matching Rules

Once tax information is received from a third-party tax engine, goTransverse filters the information through a sequence of rules to accurately match the Tax Price Category. The information proceeds through a set of eight rules in order to determine the match; if a match is not found at the first level, it will proceed to the next rule and so on. These rules are set in the following order:

  1. Match on (tax code + tax jurisdiction name + tax jurisdiction type)

  2. Match on (tax code + tax jurisdiction name)

  3. Match on (tax code + tax jurisdiction type)

  4. Match on (tax code)

  5. Match on (tax jurisdiction name + tax jurisdiction type)

  6. Match on (tax jurisdiction name)

  7. Match on (tax jurisdiction type)

  8. Match on default category

Note: You must have Tax Integration enabled to configure or view tax categories.